Missouri American Water Files Rate Request

Dateline City:
ST. LOUIS

Over $490 million of capital investments in water and sewer infrastructure drives request

ST. LOUIS--(BUSINESS WIRE)--Today, Missouri American Water filed an application with the Missouri Public Service Commission (MOPSC) requesting a change in the rates for the company’s water and sewer customers.

Missouri American Water’s last general rate case was approved by the MOPSC in July of 2016. Current rates will not change until the MOPSC completes a thorough review and analysis of the request. The regulatory process can take up to 11 months, and will include opportunities for public comment. Customers can get detailed information on the rate case filing at the company website, www.missouriamwater.com.

The main driver of the rate case is the company’s investment of more than $490 million in water and sewer improvements. These infrastructure improvements to local water and sewer plants, pumps and pipes enhance service quality, reliability, environmental performance and fire protection for customers. Additionally, increases in daily operating costs such as fuel and power continue to raise the true cost of providing reliable water and sewer service.

“These investments in plants, storage tanks, pumps and pipes are necessary to enhance and maintain service reliability, water quality and fire protection for the more than 150 communities served by Missouri American Water,” said Cheryl Norton, President of Missouri American Water. “Proper investment is needed so that we can ensure that our customers continue to receive reliable 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 company is requesting an annual revenue increase of $73.9 million for water customers and $800,000 for sewer customers.

This rate adjustment filing includes an extension of the low-income rate that was a pilot project requested by the MOPSC in the Northwest operations as part of the last rate decision. Missouri American Water is proposing to offer the low-income rate statewide. Customers that are eligible for utility assistance through the Low Income Home Energy Assistance Program (LIHEAP) would be eligible for reductions on water bills if this is approved by the MOPSC.

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

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 6,700 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in 47 states and Ontario, Canada. More information can be found by visiting www.amwater.com.

Language:
English
Contact:

Missouri American Water
Christie Barnhart, Communications Manager
417-627-3800 x 1008
Cell: 417-529-9781
Christie.Barnhart@amwater.com
or
Brian Russell, Communications Manager
314-996-2239
Cell: 314-825-3578
Brian.Russell@amwater.com

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AWK
Exchange:
NYSE
@moamwater