Overdue infrastructure maintenance and several years of stagnant revenue have several water providers in western Kentucky raising their rates. Murray, Cadiz, and Caldwell County water systems are all in the process of raising their rates.
Caldwell County Water District has requested the Public Service Commission approve a 33 percent rate increase. Board Chair Pat Fralick says Caldwell has not raised rates since 2008. She says it was a tough decision to raise them again, but revenue no longer covers the cost of upkeep.
“It got down to this. As a board, we are accountable to the people in our county to provide water 24 hours a day, 7 days a week, 365 days a year. Year, after year, after year. That is what we do and that is our only concern, has to be our only concern,” Fralick said.
Fralick says along with general maintenance costs and higher water prices, the rate hike is prompted by the need for an extra maintenance staff person and a new service vehicle.
The Kentucky Public Service Commission regulates around 155 water utilities. PSC spokesman Andrew Melnykovych says a minority of districts adjust their rates on a regular basis, though the PSC encourages small utilities to regularly seek rate adjustments to avoid substantial rate hikes.
Murray Water System is in its first year of raising rates 10 percent every 6 months through 2018. Cadiz Water department is looking to raise rates 8 percent a year for the next three years. Both utilities are raising their rates to address their aging infrastructure and build new facilities.
Cadiz water engineer Roger Boyers of Nashville’s Water Management Services says water providers all over the nation have put off raising rates and upgrading their systems due to the slow economy. “I wouldn’t call it a trend that rates are just increasing more now than ever. I think it’s just become a little more prominent. I think people are just noticing it a little bit more,” Boyers said.
