Missouri PSC Approves Missouri American Water Rate Settlement
The Missouri Public Service Commission (MoPSC) has recently approved a settlement that will result in new water and wastewater rates for Missouri American Water customers. This decision follows a rate request filed by the company on July 1, 2024. The primary driver behind this request was the significant investment made by Missouri American Water in upgrading its infrastructure.
Infrastructure Investments Drive Rate Adjustment
Missouri American Water cited approximately $1.1 billion in infrastructure investments as the key reason for seeking the rate adjustment. These investments encompass a range of improvements, including upgrades to both water treatment plants and the distribution systems that deliver water to customers. The company emphasizes that these investments are crucial for maintaining the safety, cleanliness, and reliability of water and wastewater services.
Rich Svindland, President of Missouri American Water, stated, “We are committed to making investments in our water and wastewater systems to maintain safe, clean, reliable, and affordable service to the approximately 1.6 million people in the communities we serve. This settlement allows for these continued investments while remaining focused on customer affordability.” This statement underscores the company’s position that the rate adjustment is necessary to fund essential improvements while also striving to mitigate the financial impact on customers.
Details of the Rate Adjustment
The approved settlement translates to a total annualized revenue increase of $63 million for Missouri American Water. While this represents a substantial sum, the company and the MoPSC have worked to balance the need for revenue with concerns about customer affordability. The new rates are slated to take effect by May 31, 2025. This timeline provides a period for the company to implement the changes and for customers to receive information about how their bills will be affected.
Customer Assistance Programs
Missouri American Water acknowledges that rate increases can pose a challenge for some customers. To address this, the company offers several bill payment assistance programs. These programs are designed to provide support and flexibility to customers who may be struggling to manage their water and wastewater bills. The available programs include:
- Payment Installment Plans: These plans allow customers to spread out their payments over a more extended period, making it easier to budget for their expenses.
- Budget Billing Options: Budget billing helps customers avoid significant fluctuations in their bills by establishing a more predictable, level payment amount. Customers can access these options through the company’s online MyWater portal at missouriamwater.com.
- Help to Others (H2O) Program: This program is specifically designed to assist income-eligible customers. The H2O Program provides financial assistance to those who qualify, helping them to maintain essential water and wastewater services.
Missouri American Water encourages customers to explore these assistance programs if they are concerned about the impact of the new rates on their finances. Detailed information about these programs and how to apply can be found on the company’s website.
Customer Communication
Missouri American Water is committed to keeping its customers informed about the rate changes. Customers will receive information about the new rates directly on their Missouri American Water bills. In addition, the company will provide comprehensive information on its website. Specifically, details regarding the new Water and Wastewater Rates will be available under the “Customer Service Billing” section of the website. This multi-faceted approach to communication aims to ensure that customers are aware of the changes and understand how they will affect their bills.
Background on American Water
American Water, the parent company of Missouri American Water, is a significant player in the United States’ utility sector. It holds the distinction of being the largest regulated water and wastewater utility company in the nation. The company’s history dates back to 1886, demonstrating a long-standing commitment to providing essential services.
American Water operates under the principle of “We Keep Life Flowing®.” This reflects its core mission of delivering safe, clean, reliable, and affordable drinking water and wastewater services. The company serves a vast customer base, providing these vital services to more than 14 million people. Its regulated operations span 14 states, and it also serves 18 military installations, highlighting the breadth and scope of its operations.
American Water’s workforce comprises approximately 6,700 professionals. The company emphasizes the expertise and dedication of its employees, who leverage their knowledge and the company’s extensive resources to achieve positive outcomes. These outcomes are intended to benefit a wide range of stakeholders, including customers, employees, investors, and the communities served.
