The Kentucky Public Service Commission has approved new water rates for Kentucky American Water, reflecting more than $212 million invested in water treatment and distribution infrastructure across the state.
The approved decision allows an annualised revenue increase of approximately $18.2 million. The rate adjustment follows a filing submitted by Kentucky American Water in May 2025 and takes effect from 16 December 2025.
The utility says the increase is linked primarily to system upgrades and capital improvements undertaken since its previous rate case, aimed at maintaining reliable drinking water services and meeting regulatory requirements.
Investment in treatment and distribution assets
According to Kentucky American Water, the more than $212 million invested has been directed towards water treatment facilities, distribution networks and associated infrastructure. The company states that these improvements are intended to support long-term service reliability, regulatory compliance and regional economic development.
With the new rates in place, the average residential customer using around 3,900 gallons of water per month will see an increase of approximately $2 on their monthly bill.
Regulatory approval and customer impact
Rob Burton, President of Kentucky American Water, said the approved rates will help sustain long-term investment across the network.
“Kentucky American Water is committed to providing safe, clean, reliable and affordable water service to more than half a million people across portions of 13 counties,” he said. “Our consistent approach to capital investment helps ensure compliance with state and federal regulations while maintaining the level of service customers expect.”
Customers will be notified of the new rates directly and through the company’s website.
Customer assistance programmes
Kentucky American Water also highlighted the availability of customer support schemes, including payment plans, budget billing options and its H2O Help to Others assistance programme for income-eligible customers.
