The Kentucky Public Service Commission is holding a meeting in Paducah in early September for the public to weigh in on proposed rate increases from a private sewer and water provider that would see many customers’ monthly bills take a big hike.
Bluegrass Water owns over 20 sewer systems across Kentucky – including some serving subdivisions in Marshall and McCracken counties. It also owns the Center Ridge Water District in Calloway County.
The private utility filed an application late last year with the PSC to raise its flat monthly sewer fee for residential customers to $111.72 – up from an average monthly bill of $77.77 for most of its western Kentucky households. Bluegrass Water is also seeking approval for an increased water rate. The PSC says under this proposed water rate, the average monthly household bill would rise from $77.63 to $105.85.
As part of its business model, Bluegrass Water representatives said in its rate increase application that the company “purposefully acquires systems that have experienced a significant degree of operational neglect.” Bluegrass Water officials say the company has invested over $18 million on its Kentucky water and wastewater to bring them into compliance with health and environmental regulations.
The utility argues its current rates are not enough to cover the costs of improving and maintaining these “previously dilapidated” sewer and water systems.
More than 200 Kentuckians have already submitted comments to the PSC opposing this rate increase. Many of these comments say approving these rates would put a burden on their monthly budgets. Some of these Bluegrass Water customers call the proposed rates “ridiculous” and “excessively high.”
The PSC will hold a public meeting on Sept. 2 at 5 p.m. at the McCracken County Courthouse for people to weigh in on Bluegrass Water’s proposal. Another meeting is scheduled for Sept. 8 in Georgetown. The state agency will also hold a formal hearing on the rate increase application on Sept. 21 in Frankfort.
