Lexington, December 19, 2025
Kentucky American Water customers in Lexington will experience a modest increase in their monthly water bills after the Kentucky Public Service Commission approved new rates. Starting December 16, the average residential bill, based on 3,900 gallons, will rise by about $2. The increase aims to fund over $212 million in infrastructure improvements that will secure safe and reliable drinking water services for over half a million residents across 13 counties.
Lexington, Kentucky – December 19, 2025
Kentucky American Water customers will see an increase in their monthly water bills following the Kentucky Public Service Commission’s approval of new rates. The average monthly bill for residential customers using approximately 3,900 gallons per month will rise by about $2, effective December 16, 2025. This adjustment is part of a broader strategy to support over $212 million in system improvements aimed at enhancing water treatment and distribution infrastructure.
Details of the Rate Increase
The approved rate increase will generate an additional $18.2 million in annual revenue for Kentucky American Water. The decision follows a rate request filed on May 16, 2025, which was primarily driven by significant investments in system upgrades. These enhancements are designed to ensure the continued provision of safe, clean, reliable, and affordable drinking water services to customers across the service area.
Customer Assistance Programs
To assist customers affected by the rate increase, Kentucky American Water offers several support programs. These include payment plans, budget billing, and the H2O Help to Others program, which is available to income-eligible customers. More information about these programs can be found on the company’s website.
Background on the Rate Adjustment
The rate adjustment is part of Kentucky American Water’s ongoing efforts to modernize its infrastructure and comply with state and federal regulations. The company serves over half a million people in portions of 13 counties, and the recent investments are intended to support economic development and ensure the delivery of high-quality water services to its customers.
Impacts on the Community
This rate increase reflects a necessary step towards maintaining and improving essential public services that residents rely on daily. By enhancing water treatment capabilities and distribution networks, Kentucky American Water plays a crucial role in supporting local economic growth. The infusion of funds from the rate increase is expected to stimulate job creation, attract new investments, and promote small-business resilience in the region.
Looking Ahead
As Lexington continues to grow, investments in infrastructure like those from Kentucky American Water become increasingly important. Such enhancements not only secure reliable water services but also signal a commitment to meeting the needs of a growing community. Local businesses and residents alike can look forward to the benefits of these strategic investments in public utilities.
FAQs
When will the new water rates take effect?
The new rates are effective as of December 16, 2025.
How much will the average residential water bill increase?
The average monthly bill for residential customers using approximately 3,900 gallons per month will increase by about $2.
What is the reason for the rate increase?
The rate increase is primarily driven by over $212 million in water treatment and distribution system improvements made since the company’s last rate filing.
What customer assistance programs are available?
Kentucky American Water offers payment plans, budget billing, and the H2O Help to Others program for income-eligible customers.
How many customers does Kentucky American Water serve?
Kentucky American Water serves over half a million people in portions of 13 counties.
| Feature | Details |
|---|---|
| Rate Increase | Average monthly bill for residential customers using 3,900 gallons per month will increase by approximately $2, effective December 16, 2025. |
| Annual Revenue Increase | Additional $18.2 million in annual revenue for Kentucky American Water. |
| Infrastructure Investment | Over $212 million in water treatment and distribution system improvements since the last rate filing. |
| Customer Assistance Programs | Payment plans, budget billing, and H2O Help to Others program for income-eligible customers. |
| Service Area | Serving over half a million people in portions of 13 counties. |
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