The Missouri Public Service Commission regulates investor-owned electric, steam, natural gas, water and sewer and telephone companies. Its mission is to ensure Missouri consumers have access to safe, reliable and reasonably priced utility service while allowing those utility companies under our jurisdiction an opportunity to earn a reasonable return on their investment. The PSC also regulates manufacturers and retail dealers who sell new and used manufactured homes and modular units. The commission was established in 1913. The PSC is comprised of five commissioners, who are appointed by the governor.
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PR-08-47 -- PSC Issues Decision In Missouri-American Water Company Rate Cases
Contact: Kevin Kelly (573) 751-9300
FOR IMMEDIATE RELEASE -- OCTOBER 4, 2007
JEFFERSON CITY—The Missouri Public Service Commission has approved a joint recommendation filed by several parties in water and sewer rate cases filed by the Missouri-American Water Company (MAWC). This is the first general rate increase for Missouri-American Water Company since August of 2000.
Under the joint recommendation approved by the Commission, Missouri-American Water Company will increase annual water and sewer operating revenues by approximately $28.5 million. No party to the rate cases objected to either the revenue requirement increases or to continued district specific pricing.
“The Commission concludes that this revenue requirement is no more than is sufficient to keep MAWC’s utility plants in proper repair for effective public service, and insure to MAWC’s investors a reasonable return upon funds invested,” the Commission said.
The joint recommendation was filed by Missouri-American Water Company, several intervenors in the case as well as the PSC Staff and the Office of the Public Counsel (a separate state agency which represents the general public in matters before the Commission).
An increase in capital and operating expenses is the primary cause for the rate increases. According to testimony filed in the rate case, Missouri-American Water Company has made over $182 million in capital investment expenditures since its last rate case (cost period is 2003 through June of 2006). Those improvements include installing new water lines, meters and hydrants and making improvements at water treatment, pumping and storage facilities.
The effect of the joint recommendation as approved by the Commission on a typical residential customer in each of Missouri-American’s districts appears below:
Brunswick (W) -- 4,000 gallons -- Current Rate: $22.58 per month; New Rate: $36.64 per month
Jefferson City (W) -- 5,000 gallons -- Current Rate: $20.55 per month; New Rate: $27.57 per month
Joplin (W) -- 5,700 gallons -- Current Rate: $16.29 per month; New Rate: $26.70 per month
Mexico (W) -- 4,600 gallons -- Current Rate: $23.92 per month; New Rate: $31.75 per month
Parkville (W) -- 8,800 gallons -- Current Rate: $38.39 per month; New Rate: $46.37 per month
St. Charles (W) -- 8,200 gallons -- Current Rate: $22.58 per month;New Rate: $24.55 per month
St. Joseph (W) -- 4,800 gallons -- Current Rate: $22.63 per month; New Rate: $29.23 per month
St. Louis (W) -- 23,800 gallons* -- Current Rate: $61.21 quarterly; New Rate: $68.83 quarterly
Warrensburg (W) -- 5,300 gallons -- Current Rate: $18.57 per month; New Rate: $22.88 per month
Warren Co. (W) -- 5,300 gallons -- Current Rate: $20.33 per month; New Rate: $32.99 per month
Parkville (S) -- Flat Rate -- Current Rate: $40.94 per month; New Rate: $46.70 per month
Cedar Hills (S) -- Flat Rate-Single Family -- Current Rate: $18.00 per month; New Rate: $23.59 per month
Warren Co. (S) -- Flat Rate -- Current Rate: $18.14 per month; New Rate: $29.42 per month
(W)-Water (S)-Sewer *-Quarterly water usage
Missouri-American Water Company serves approximately 459,000 water customers in its 10 districts and approximately 1,000 sewer customers in its three districts in Missouri.
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Case Nos. WR-2007-0216 & SR-2007-0217