Public Service Commission approves Missouri-American Water Company rate increase

(From Missouri Public Service Commission)

The Missouri Public Service Commission has approved agreements reached by parties in water and sewer rate cases filed by the Missouri-American Water Company (MAWC). MAWC is to file tariffs reflecting the Commission’s decision with a proposed effective date for new rates.

Under the agreements, MAWC is authorized to increase water and sewer revenues by approximately $95 million. Of that amount, approximately $50.3 million was previously authorized through a Water and Sewer Infrastructure Rate Adjustment (WSIRA) in prior proceedings and is already being collected from customers, resulting in a net revenue increase of approximately $44.7 million. 

 When MAWC filed its rate request on July 1, 2022, it sought a net increase in water and sewer revenues of approximately $99.6 million in addition to what it was already collecting through its WSIRA.

According to the PSC Staff, a St. Louis District residential customer using approximately 5,400 gallons of water a month will see water rates increase by approximately $5.64 a month. For a residential customer using 5,400 gallons of water in MAWC’s other districts, water rates will increase by approximately $8.70 a month. This would include residential water customers in the MAWC service areas of Jefferson City, St. Joseph, Joplin, St. Charles, Warrensburg, Platte County, Tri-States and Brunswick. Regarding sewer rates, the PSC Staff estimates residential flat rate sewer rates will increase by between $1.86 and $15.08 a month depending on the rate group/service area.

Under the agreements approved by the Commission:

· MAWC will maintain its existing tariff groups and districts.

· MAWC’s late payment charge (currently 1.5% per month) will be eliminated for both water and sewer.

· MAWC will participate in the Critical Needs Program and the Rehousing Pilot Program as proposed by the Office of the Public Counsel. MAWC will provide $250,000 of annual funding to the Critical Needs Program and $100,000 of annual funding to the Rehousing Pilot Program. Funding will be shared 50/50 between MAWC and its customers.

· MAWC withdrew its request for a revenue stabilization mechanism.

“MAWC provides safe and adequate service, and the Commission concludes, based upon its review of the whole record, that the rates approved as a result of this order are just and reasonable and support the continued provision of safe and adequate service,” said the Commission. “The revenue increase approved by the Commission through the First and Third Stipulations is no more than what is sufficient to keep MAWC’s utility plants in proper repair for effective service and provide to MAWC’s investors the opportunity to earn a reasonable return upon funds invested.”

MAWC provides water service to approximately 475,000 customers and sewer service to approximately 18,000 customers in Missouri.