ST. LOUIS, May 29, 2001 — Missouri-American Water Company received approval from the Missouri Public Service Commission for a 4.9% overall rate increase for the company's 308,000 customers in St. Louis County, increasing the company's annual revenues by $5.2 million.
The increase, which went into effect May 18, 2001, is related to the company's normal operating costs that include capital improvements to water treatment facilities and the distribution system incurred since the last rate increase was granted more than three years ago.
The rate order issued by the Public Service Commission provides an increase equaling 62 percent of the $8.4 million annual revenue increase sought by Missouri-American for expenditures associated with normal ongoing operations. "Facility and distribution system upgrades and replacements are necessary for the company to maintain the reliability and quality standards our customers deserve," said Eric W. Thornburg, president of Missouri-American.
The company had also requested $7.3 million in additional annual revenues relating to items outside the scope of daily ongoing operations, including a proposed program to recover costs on a current basis for necessary water main replacements, the recovery of costs associated with Missouri-American's acquisition of St. Louis County Water Company in 1999, and a cost sharing proposal for operating synergies realized from combining the entities. The Public Service Commission order did not provide a rate increase for these items.
Missouri-American Water Company provides water and wastewater service to more than 1.2 million people throughout more than 100 communities. Missouri-American is a subsidiary of American Water Works Company, the nation's largest and most geographically diverse investor-owned water service enterprise with operations in 23 states.
