Proposal may raise Missouri American Water rates by $18 monthly

ST. LOUIS COUNTY, Mo. – Your water utility bills could look a little more expensive come next year. A proposal seeks to increase rates by $18 per month, on average, for Missouri American Water customers.

Some people in the St. Louis Reddit community brought attention to a letter they recently received from Missouri American Water informing of the proposed rate increases.

A Missouri American Water spokesperson tells FOX 2 that the proposed rate increases are part of a request filed with the Missouri Public Service Commission in July to review water and wastewater rates, along with operations, maintenance, and capital investments.

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Missouri American Water says it usually takes around 11 months from the date the requests were submitted to move forward with a decision, and the process usually involves some combination of extensive reviews, stakeholder consultations and public hearings.

One public hearing in that process is scheduled for Tuesday evening at the University of Missouri-St. Louis (UMSL). Community members can gather for a 6 p.m. public meeting at UMSL's Millennium Student Center.

The Missouri Public Service Commission says Tuesday's hearing will consist of public information and a question-and-answer session, followed by the Commission receiving testimony from the public.

Missouri American Water services hundreds of thousands of customers across parts of St. Louis County, St. Charles County and Jefferson County in the St. Louis region.

Under the currently proposed rate, according to Missouri American Water, water bills for the average residential customer using 5,475 gallons per month would increase around $18 per month. The proposed rate hikes come in an effort to support ongoing water and wastewater system investments.

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Daily News Missouri American Water sent this statement, in part, to FOX 2 on its ongoing investment and proposal:

"Our rate request is primarily driven (over 80%) by investments that have been completed or will soon be completed. It covers the period of January 2023 to May 2025. That includes the replacement, lining and installation of approximately 250 miles of pipe and the targeted replacement of lead service lines. Improvements also include treatment plant upgrades, new storage tanks, fire hydrants, meters, and a variety of other construction projects to continue to improve service, reliability, and water quality. In St. Louis County we have replaced about 443,000 feet of water pipe with another 16,00 scheduled for completion.

We are required to make these investments and then seek rate adjustments to recover the cost. The $18 average is a statewide figure and will vary according to a customer's usage. Again, this is strictly a proposed rate adjustment. It is uncertain what, if any, rate change will take place at the end of this process."

Missouri American Water also told FOX 2 it could not arbitrarily change rates as a regulated utility and any future decisions as to whether future rates increase will ultimately be decided by the Missouri Public Service Commission.