Kentucky American Water Completes $1.4 Million Acquisition of Water and Wastewater Assets

en.Wedoany.com Reported - On October 9, Kentucky American Water completed the acquisition of the water and wastewater systems of the Black Mountain Utility District in Harlan County, Kentucky, for $1.4 million, adding more than 4,300 water connections and 6 wastewater service connections. The company plans to invest more than $20.9 million over the next five years to upgrade local water infrastructure, including meters, pump stations, and water monitoring and control systems.

The Kentucky Public Service Commission approved the transfer of Black Mountain's water assets and operational control on July 10, 2026, and ruled on September 21 that the related wastewater facilities fall outside its regulatory jurisdiction. Following the completion of the transaction, 10 employees from the former utility district transitioned into Kentucky American Water's operational system, continuing to participate in the operation of local water facilities and customer service.

Kentucky American Water plans to replace local water meters in the first year after the acquisition and gradually upgrade pump stations, facility security protection, and water monitoring and control equipment. The upgrades also include operating status monitoring, safety control systems, and customer notification systems, with the related investments to be implemented over the five-year plan period.

Newly acquired water customers will gradually transition to Kentucky American Water's rate system. Under the transaction arrangement approved by the regulatory agency, the monthly water bill for typical residential customers is expected to increase by an average of approximately $7, while the monthly bill for commercial customers is expected to decrease by an average of approximately $15. The typical residential customer's monthly fixed charge is $19.89, and based on a monthly usage of 4,032 gallons, the average bill is approximately $51.57.

The company plans to send the first water bills to new customers in October or November, with the billing period calculated from the asset closing date of October 9. Historical arrears incurred by the former utility district will still be collected by the original entity. New customers can manage bill inquiries, payments, and water usage information through online accounts, and receive notifications of water service interruptions, main line failures, and other water supply anomalies.