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
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
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
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
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 www.missouriamwater.com
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 amwater.com
and follow American Water on Twitter,