Public hearing Thursday for Missouri American Water Joplin rate increase request

(From the City of Joplin)

On June 30, 2017, Missouri American Water requested a general rate increase for water and sewer service. The request would produce $369 million in gross annual water and sewer revenues for the company and represents a 25.4% increase over current revenues. The rates as a result of the company’s last request for a general rate increase were effective July 20, 2016.

The company recently stated that a Joplin residential customer’s average usage is 4,750 gallons. A residential customer who used 4,750 gallons in 2000 would have paid approximately $15.00 per month for service. Today, the same customer pays approximately $33.00 per month for 4,750 gallons. If the company’s request is adopted as-is, a Joplin residential customer will pay approximately $40.00 per month for 4,750 gallons. A customer who typically uses 10,000 gallons per month pays approximately $52.75 per month today, and this request would increase that to $72.95 per month.

The company proposes to have the same “fixed charge” and “volumetric charge” statewide. That means when upgrades are required in the St. Louis or Kansas City area, the costs are borne by all Missouri American Water customers, including customers in Joplin.

The company proposes to reduce the “fixed charge” from $15.33 to $10.00. The company proposes to increase the “volumetric charge” (price per 1,000 gallons of water consumed) from $3.7424 to $6.29530. This change will shift more costs to those who use large quantities of water (especially families and businesses).

As part of the rate making process, customers are invited to comment on the company’s request. The City of Joplin encourages its citizens to take advantage of this opportunity. Public Comments can be made online here: https://www.efis.psc.mo.gov/mpsc/Comments.html (Reference Case No. WR-2017-0285).

The in-person local public hearing will be on February 1, 2018 at 5:30 p.m. at Missouri Southern State University, Mills-Anderson Justice Center, 3950 East Newman Road, Joplin, MO 64801. If you have questions or comments, we encourage you to attend.

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