St. Louis-area residents will have the opportunity to offer their opinion on a proposed water rate increase from Missouri American Water Co.
The average increase for residential customers under the initial proposal would be $18 a month, said Missouri American spokesperson Christie Barnhart.
The Missouri Public Service Commission is holding a public hearing at 6 p.m. Tuesday in the Millennium Student Center at the University of Missouri-St. Louis.
A rate increase proposal filed by Missouri American Water in July will be up for discussion.
The company said the rate increase is necessary for water infrastructure projects from January 2023 through May 2026.
“What is kind of confusing is it's money that has already been spent. So basically, what we're doing is we're coming in and asking for recovery of those expenses,” Barnhart said.
She said there is never a good time to ask for an increase in rates.
“But I also believe that we have a responsibility to continue to provide reliable water service,” Barnhart said.
Detractors of the proposed plan warn the increase will largely affect residential customers.
John Coffman, an attorney with Consumers Council of Missouri, called the proposal “extremely aggressive,” including an increase in the fixed charge on a bill, sometimes called a customer charge.
“This is the fee that you pay before you use any water. Currently in St. Louis County, you would pay $10 a month for that, and then you'd pay based on your water usage. But under this proposal it would be a $21 fee that you would pay. So it's more than double,” Coffman said.
Barnhart said the fixed charge adjustment is driven by actual cost of service.
What Missouri American Water has proposed is not necessarily the final result. The process of a rate increase takes months, with public hearings being a part of it.
Coffman said part of the meeting Tuesday night will be a question-and-answer session followed by an opportunity to speak on the proposed rate change in front of some members of the commission.
“That testimony will be taken down by a court reporter, and that will become evidence in the case, and it's a really effective way to let the decision-makers know what the impact is of increases this large and basic essential services,” Coffman said.
Beyond the hearings, Coffman said there will be alternative recommendations regarding the rate proposal that could lead to an agreement or to the proposal being litigated before the commission.
