State Approves Rate Increase for Missouri American Water

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JEFFERSON CITY - Missouri Public Service approved a 24 million dollar increase in rates Wednesday. The rate hikes will affect customers in the central Missouri cities of Jefferson City, Mexico, and Brunswick.

The request for this increase was filed June 30, 2011. The initial request sought to increase rates by $42.9 million. According to Missouri American Water, the reason for the rate increase is "on-going improvements and investments in water and wastewater plants, pumps, and pipelines that help to enhance service reliability to customers."

Preliminary estimates say in Jefferson City, monthly water rates will go from $27.37 to $40.17. In Mexico, monthly water rates will increase from $33.54 to $40.92, and in Brunswick, those rates will actually decrease, from $61.76 to $60.04.

Missouri American Water was audited by the Missouri Public Service Commission, and the commission took suggestions from a public council that represents individuals and small businesses. The rates take effect for service on and after April 1.

Representatives with the Missouri Public Service Commission said by law, companies must prove they made improvements to infrastructure prior to the request for funds.