New Customer Rates for Missouri American Water Approved by Missouri Public Service Commission

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Rate change driven by over $250 million of infrastructure investments statewide

ST. LOUIS--(BUSINESS WIRE)--Investments of over $250 million in water and wastewater systems are the key driver in a rate order issued by the Missouri Public Service Commission (MoPSC) today. Included in the new rates is approximately $207 million of water and wastewater system investments made by Missouri American Water throughout its Missouri service areas that were not previously reflected in rates, and $48 million of previously approved Infrastructure System Replacement Surcharge (“ISRS”) investments.

“Periodic rate adjustments allow us to continue making critical investments in water and wastewater plants, pumps and pipelines that help to enhance quality, service reliability, and fire protection for customers,” said Cheryl Norton, president of Missouri American Water. “These investments are needed in the over 150 communities we serve so we can ensure our customers continue to receive service that meets all regulatory standards.”

The need to improve water and sewer systems is a national challenge. The American Society of Civil Engineers recently stated an estimated $1 trillion of investment is needed across the nation over the next 25 years in water system investments, and an estimated $271 billion in sewer system investments. Increasing regulations and stricter water quality standards continue to contribute to increases in costs for service nationwide.

The rate order will result in approximately $38 million in additional annual base rate revenue, including $5 million of previously approved ISRS revenue. According to company officials, additional revenues will allow Missouri American Water to continue to invest proactively in its water and wastewater infrastructure throughout the state.

The revenue requirement reflects an $18 million reduction in the federal income tax due to the enactment of the Tax Cuts and Jobs Act (the “TCJA”).

New rates are expected to take effect in late May/early June. The last change in base rates for water service and wastewater treatment occurred in 2016.

Missouri American Water’s rates are based on the costs of providing water and sewer service as reviewed and approved by the MoPSC.

The amount of the rate change customers will experience will vary among the company’s operating districts. Customers will receive communication further explaining the rate change, and they can visit for additional information.

Missouri American Water

Missouri American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 1.5 million people.

With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,900 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in 46 states and Ontario, Canada. American Water provides safe, clean, affordable and reliable water services to our customers to make sure we keep their lives flowing. For more information, visit and follow American Water on Twitter, Facebook and LinkedIn.


Missouri American Water
Christie Barnhart
External Affairs Manager
T - 417-627-3800 x 1008
C - 417-529-9781
Brian Russell
Communications Manager
T - 314-996-2239
C - 314-825-3578

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