Missouri American Seeks Yet Another Water Rate Hike

The Luminary Staff

One year after receiving another rate hike, Missouri American Water is back at it again: the multi-national behemoth is asking for nearly a 28 percent increase in local water rates.


This is the latest attempt by Missouri American to raise rates in the past few years. The request for rates must be approved by the Missouri Public Service Commission, but previous rate hearings have led to increases in water service (though not as steep as the water company would have had it according to documents).

If approved, the average customer using 8,000 gallons of water per month would incur an increase of $15,36 per month  more than $180 per year. The rate increase would also translate into a $13 increase per month for the 100 or so customers who rely on Missouri American's wastewater system.

Missouri American said that they were asking for the increase because they spent more than $2.2 billion in investments and needed to recoup the money in order to remain competitive in today's market.
That argument has largely come under fire despite arguments from the water behemoth claiming that a typical gallon of water from the American tap costs pennies compared to bottled water.

Missouri American is a subsidiary of American Water -- a Vorhees, N.J. based company that is owned by a London company with a German parent company -- has asked for increases over the past several years despite promises made against rate hikes when the conglomerate was formed. In 2008 the firm asked for an almost 50 percent raise in rates and they took nearly half after approval from the Missouri Public Service Commission (PSC). In 2009, it appears they're coming for the rest.

 The  PSC  review is expected to take eight months.