Kentucky Public Service Commission Approves Approximately $8 Million in Water Main Improvements through New Infrastructure Program

Company Also Receives PSC Approval for Placing a Credit on Customer Bills as a Result of Re-financing Long-Term Debt

LEXINGTON, Ky., (June 19, 2020) – The Kentucky Public Service Commission has authorized approximately $8.3 million of water infrastructure improvement projects proposed by Kentucky American Water to be paid for through a Qualified Infrastructure Program (QIP) line item on customer bills. The PSC approved the new program in 2019, with the first projects to be implemented in 2020 following PSC review and approval.

The QIP will allow the company to replace aging water system infrastructure at a quicker pace before it becomes potentially more problematic and more costly to replace. In its order regarding the company’s 2020 QIP program, the PSC authorized approximately six miles of water main replacement projects along with main replacements associated with water main repairs. This work will be paid for with the QIP fees collected through customers’ bills. The fee associated with the program will add $.36 to the average monthly residential bill.

“Aging water system infrastructure replacement and resiliency continues to be a critical topic of discussion across the nation. We appreciate the PSC supporting a new and progressive approach toward funding water infrastructure improvements in the Commonwealth, and we are hopeful that this program will continue to evolve in the future so that we are able to replace more critical water infrastructure at a faster pace,” said Nick Rowe, president of Kentucky American Water and senior vice president of American Water’s Southeast Division. “The communities we serve will benefit from it.

“At the same time, we remain focused on cost control and increased efficiencies to balance the rate impact of these needed investments. Just this month the PSC also approved our proposal to place a credit on customers’ water bills that is related to the savings we realized as a company when we refinanced our long-term debt expense,” Rowe said. “That credit will be applied to July bills. We are always seeking ways to maintain not only reliable, quality service but also affordable service for our customers.”

Through the QIP program, Kentucky American Water submits to the PSC each spring for review a detailed report of water system improvement projects proposed for completion between July of that same year and the following June. After thorough review and consideration, the PSC will determine the amount of funding approved for projects that year.

About Kentucky American Water
Kentucky American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately half a million people. Visit and follow Kentucky American Water on Twitter, Facebook, and Instagram.

About American Water
With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,800 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to more than 15 million people in 46 states. American Water provides safe, clean, affordable and reliable water services to our customers to make sure we keep their lives flowing. For more information, visit and follow American Water on Twitter, Facebook and LinkedIn.

Media Contact:
Susan Lancho
External Affairs Manager