The Missouri Public Service Commission (PSC) issued its Report and Order (Order) in the Missouri-American Water Company (MAWC) rate case. MAWC provides water service to approximately 484,000 customers in Missouri and sewer service to approximately 24,000 customers in the state.
The Order approved two settlement agreements, including an agreement to increase annual water and sewer revenues by $143 million ⸺ $23 million less than what the company requested when it filed the rate case in July 2024. The revenue requirement agreement was signed by the PSC Staff, the Missouri Office of the Public Counsel, the Midwest Energy Consumers Group, the Consumers Council of Missouri, AARP, and MAWC. Other intervenors ⸺ the City of St. Joseph; the Missouri Industrial Energy Consumers; The Empire District Electric Company d/b/a Liberty; Public Water Supply Districts No. 1 and No. 2 of Andrew County; the City of Riverside; and Triumph Foods, LLC, ⸺ were not signatories to the agreement but did not file objections.
The Order addressed class cost of service and rate design, but did not adopt the Universal Affordability Tariff proposal as proposed by some of the parties because it contained no cost estimates and was designed to be absorbed by ratepayers with no participation from MAWC shareholders. The Order held that “the program had no defined parameters, did not comply with Missouri laws, and would have saddled all MAWC ratepayers with 100% of its costs with no cap.”
The new rates will take effect once MAWC files tariff sheets that are reviewed and approved by the Commission.
