Wednesday, August 31, 2022

PSC approves Missouri American Water purchase of Purcell water, sewer systems

(From the Public Service Commission)

The Missouri Public Service Commission has approved an application filed by the Missouri-American Water Company (MAWC) which grants MAWC certificates of convenience and necessity (CCN) to install, own, acquire, operate and maintain water and sewer systems in Jasper County. The CCN would allow MAWC to acquire the water and sewer assets of the City of Purcell.

The Commission noted in its order approving the application that in February of 2021, MAWC was contacted for assistance with the City of Purcell’s water and sewer systems. “Purcell had no certified water or sewer system operator at that time and was unable to operate its systems in a safe and compliant manner,” said the Commission. 








 “Certified operators are required by the permit and are necessary for ensuring these systems are operable, providing safe and reliable service, and compliant with the terms of the permit. At the time MAWC began operating the systems for Purcell, the drinking water disinfection system was not functioning, and the sewer system was discharging wastewater from the plant that was not safe and compliant.”

On March 16, 2021, the City of Purcell entered into an operation and maintenance agreement with MAWC. The City of Purcell held an election on August 3, 2021, with over 90% of the votes in favor of selling its water and sewer systems to MAWC.

The Commission approved the CCN determining: 1) There is a need for the service; 2) MAWC is qualified to provide the proposed service; 3) MAWC has the financial ability to provide the service; 4) MAWC’s proposal is economically feasible; and 5) The service promotes the public interest.

Current customers pay different water rates based upon whether they reside inside the City of Purcell. Those residing inside the city pay a monthly customer charge of $15.00 and a $3.50 per 1,000 gallons commodity rate for water service. Those residing outside the city pay a $22.00 a month customer charge and a $6.00 per 1,000 gallons commodity rate for water service. Sewer customers pay $36.00 for the first 0-999 gallons and $5.00 per each additional 1,000 gallons.








In this case, MAWC proposed combining all customers and consolidating rates because there are no additional costs to providing service inside or outside the city. As a result, water customers will pay a $9.00 a month customer charge and a $6.2469 per 1,000 gallons commodity rate for water service. Customers will pay a flat monthly rate of $61.64 for sewer service.

MAWC provides water service to approximately 470,000 customers in Missouri. It also provides sewer service to approximately 16,500 customers in the state. The City of Purcell serves approximately 160 water accounts and 150 sewer accounts.

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