
Lexington challenges Kentucky American Water's construction practices
LEXINGTON, Ky. — The city has filed a formal complaint with the Kentucky Public Service Commission challenging the construction practices of Kentucky American Water, citing damage to roads and disruptions to commerce that it says residents and businesses have endured over the past two years.
Mayor Linda Gorton said the city tried to work with the utility company before resorting to the regulatory agency. "They don't listen to us and they don't listen to our residents. They have to listen to the Public Service Commission," Gorton said in a statement released by the city government.
The complaint alleges that Kentucky American Water's main replacement and repair projects, along with subsequent repaving, are conducted "in unreasonable, unprofessional, and inadequate manners," causing confusion, delays and cost overruns that frequently exceed projected completion dates. Gorton specifically cited problems on Fontaine Road, North Limestone Street, and High Street, but said the issues extend to other locations citywide.
The utility company has invested heavily in aging water main replacements across its service area. The company announced $4.5 million in water main replacement projects last year and another $9.1 million in improvements announced this summer. The PSC approved rate adjustments in November, granting Kentucky American Water a $17.3 million increase based on $330 million in system investments.
The mayor expressed concern that construction-related costs could ultimately be passed on to customers. The Public Service Commission regulates utility rates, services and construction practices for investor-owned water utilities in Kentucky. The complaint document, filed with the PSC, provides details on the city's allegations.