May 3—Joplin water customers will see their bills rise later this month after regulators approved a rate increase for Missouri American Water Co.
According to the Missouri Public Service Commission, a residential customer in Joplin using 5,400 gallons of water a month will see rates go up by $8.70 a month.
On July 1, Missouri American filed water and sewer rate cases with the PSC seeking to increase annual water and sewer revenues statewide by $99.6 million, or 25.7%. Missouri American said it wants to recover nearly $770 million in investments it had either completed or planned between January 2021 and May 2023.
Missouri American provides water service to Joplin but not sewer service.
Under the agreements, Missouri American is authorized to increase water and sewer revenues by about $95 million. Of that amount, approximately $50.3 million was previously authorized through a Water and Sewer Infrastructure Rate Adjustment charge in prior proceedings, according to the PSC, and is already being collected from customers, resulting in a net revenue increase of approximately $44.7 million.
When Missouri American filed its rate increase last year, it sought a net increase in water and sewer revenues of approximately $99.6 million in addition to what it was already collecting through its WSIRA charge.
The agreement was reached between a number of parties in the rate case, including the water company, the staff of the PSC, the Office of the Public Counsel and the Consumer's Council of Missouri. The Office of Public Counsel is a separate state agency charged with representing ratepayers before the PSC.
Rich Svindland, president of Missouri American, said in a statement Wednesday: "The settlement allows us to recover prudent investments in our treatment plants and pipelines that benefit customers by enhancing service, reliability, resiliency and water quality."
The company had previously said the rate case includes the replacement or installation of 280 miles of water and wastewater pipelines, upgrading of treatment plants, storage tanks, wells, pumping and lift stations, fire hydrants and meters. Among those projects was the replacement of the high-service pump station building and its pumps in Joplin.
The utility last year received a building permit from the city of Joplin for a new high-service pump station at its treatment plant at 21st Street and Murphy Avenue in Joplin. The pump station replaced units in service since 1983. The project included a new building to house the pump. That project was valued at $6.6 million, according to the building permit, with completion projected for the end of the year.