Following on the heels of Ameren, on July 2, 2024, Missouri American Water Company (“MAWC”) requested a general rate increase of approximately +$166.6 million or +34.4% annually for water and sewer services. This request follows a May 2023 rate increase in which the average residential customer’s bill increased by about +$18.00 per month.
MAWC’s proposal includes:
- Increasing the fixed monthly customer charge from $10.00 per month to $21.34 per month, a +113% increase.
- An outrageous level of corporate profit: 10.75% ROE, which is even higher than their currently permitted 10.0% corporate profit (ROE).
- A mechanism called “Revenue Stabilization Mechanism” (RSM) which would guarantee the proposed 10.75% ROE by adjusting water rates automatically whenever MAWC’s sales numbers drop. This would equalize the expected revenue of the monopoly, while subjecting consumers to automatic and volatile increases in between rate case reviews. This is another regulatory gem permitted by state legislation in 2018.
Consumers Council is continuing to review MAWC’s rate request and has intervened in this case. We are closely scrutinizing MAWC’s proposal and focusing on ensuring that rates are affordable for all, especially for those who are least able to bear an additional rate increase. Missouri American Water Company is part of American Water, the largest water company in the United States. (See: WR-2024-0320)