Missouri American Water Co. seeks rate increase

By Kimberly Long, Staff Writer
Posted Mar 15, 2010 @ 11:40 AM
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Missouri American Water Co. has filed a proposal with the Missouri Public Service Commission (PSC) that – if granted – would hike the average water user's bill by nearly 26 percent, or $10.36 a month.
A public hearing is set for April 5 at the Telecommunica-tions Community Resource Center, Room 167, 2900 Doreli Lane, in Mexico. A question and answer session begins at 6 p.m. The public hearing will begin at 6:30 p.m.
The request was filed in October 2009 with the Missouri Public Service Commission – which regulates the rates of privately owned utilities in Missouri.
The water company's application comes on the heels of a request made 16 months ago, which was granted. It also follows a filing by AmerenUE, seeking an increase in electric rates.
If approved, the Missouri American request would increase the monthly bill for a typical residential customer using about 4,500 gallons of water by 25.99 percent to about $10.36, according to Missouri American data.
MAWC officials said Thursday the increase would generate revenue to help the water company recoup money that has already been spent in the Mexico district water system.
"The commission does not let us collect on anything we do unless it's in service," explained Christina Barnhart, local Missouri American communications manager. "Basically, it covers investments made from Oct. 1, 2008, to April 30 of this year."
In this case, Barnhart said, revenue from the increase will go towards the upgrade of water mains – some of which are extremely outdated.
"The pipes we have in the ground that carry our water from where it is treated to the tap, are over 100 years old," Barnhart noted. "Depending on where they are located, replacing them could be very expensive."
Missouri American is also requesting approval of a new reduced rate for qualified low-income customers, which is included in the rate case filing. The water company currently has an H2O help program in place, but it's not part of a tariff. That program, Barnhart said, is company funded, although customers can donate if they choose, to help residents pay their bill.
Anyone wishing to comment on MAWC's proposal, may do so in several ways:
• In person: Testify at the local public hearing.
• By mail: Send a written comment to the PSC at: Missouri Public Service Commission, P.O. Box 360, Jefferson CIty, MO. 65102.
• Electronically: Submit a comment to the PSC through the Internet by accessing the PSC's Electronic Filing and Information System (also called "EFIS") at the Web site http://www.efis.psc.mo.gov/mpsc/Comments.html (please reference File No.WR-2010-0131).
• Through the Office of the Public Counsel: P.O. Box 2230, Jefferson City, Mo. 65102. Telephone (573) 751-4857 or toll-free (866)-922-2959.
Comments are viewable by the public.
The commission normally conducts hearings to determine whether proposed rates are reasonable. In most cases, it has up to 11 months to reach its decision.

Missouri American Water Co. has filed a proposal with the Missouri Public Service Commission (PSC) that – if granted – would hike the average water user's bill by nearly 26 percent, or $10.36 a month.
A public hearing is set for April 5 at the Telecommunica-tions Community Resource Center, Room 167, 2900 Doreli Lane, in Mexico. A question and answer session begins at 6 p.m. The public hearing will begin at 6:30 p.m.
The request was filed in October 2009 with the Missouri Public Service Commission – which regulates the rates of privately owned utilities in Missouri.
The water company's application comes on the heels of a request made 16 months ago, which was granted. It also follows a filing by AmerenUE, seeking an increase in electric rates.
If approved, the Missouri American request would increase the monthly bill for a typical residential customer using about 4,500 gallons of water by 25.99 percent to about $10.36, according to Missouri American data.
MAWC officials said Thursday the increase would generate revenue to help the water company recoup money that has already been spent in the Mexico district water system.
"The commission does not let us collect on anything we do unless it's in service," explained Christina Barnhart, local Missouri American communications manager. "Basically, it covers investments made from Oct. 1, 2008, to April 30 of this year."
In this case, Barnhart said, revenue from the increase will go towards the upgrade of water mains – some of which are extremely outdated.
"The pipes we have in the ground that carry our water from where it is treated to the tap, are over 100 years old," Barnhart noted. "Depending on where they are located, replacing them could be very expensive."
Missouri American is also requesting approval of a new reduced rate for qualified low-income customers, which is included in the rate case filing. The water company currently has an H2O help program in place, but it's not part of a tariff. That program, Barnhart said, is company funded, although customers can donate if they choose, to help residents pay their bill.
Anyone wishing to comment on MAWC's proposal, may do so in several ways:
• In person: Testify at the local public hearing.
• By mail: Send a written comment to the PSC at: Missouri Public Service Commission, P.O. Box 360, Jefferson CIty, MO. 65102.
• Electronically: Submit a comment to the PSC through the Internet by accessing the PSC's Electronic Filing and Information System (also called "EFIS") at the Web site http://www.efis.psc.mo.gov/mpsc/Comments.html (please reference File No.WR-2010-0131).
• Through the Office of the Public Counsel: P.O. Box 2230, Jefferson City, Mo. 65102. Telephone (573) 751-4857 or toll-free (866)-922-2959.
Comments are viewable by the public.
The commission normally conducts hearings to determine whether proposed rates are reasonable. In most cases, it has up to 11 months to reach its decision.

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