The League opposes a request by Missouri American Water (MAWC) for a rate increase, which is currently being reviewed by the Missouri Public Service Commission (MPSC).  Utility rates for the St Louis region continue to increase; all have seen the automatically granted increases for cost of fuels and inflation.  As described elsewhere on this website, electricity provider Ameren also proposes a rate increase.  Large rate hikes will impact the minority, low income, fixed income and elderly households of St Louis City and County disproportionately. 

This request follows a May, 2023 rate increase in which the average residential customer’s bill rose by about $18.00 per month. In the 2024 Proposed Rate summary, MAWC stated present rates in St. Louis County were around $45.88 a month for homes using 4,000 gallons of water a month. Under the proposed increase, that same amount of water usage would cost about $62.36 a month – a 35.9% increase for usage.

MAWC’s proposal also includes:

• Increasing the fixed monthly customer charge from $10.00 per month to $21.34 per month, a 113% increase. This access fee is paid regardless of the amount of water used. Customers cannot use conservation practices to reduce their bill.

• Increasing permissible corporate profit. The company requests a 10.75% Return on Equity (ROE), compared to their currently permitted 10.0% corporate profit (ROE).  If approved, a mechanism called “Revenue Stabilization Mechanism” 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. 

League members and other citizens are encouraged to send comments to MPSC opposing the rate hike. When you do so, you must refer to file docket number WR-2024-0320.  See full details of the water rate increase proposal.

The League believes that with the numerous impacts of climate change that the St. Louis region has experienced, it is important to protect and manage air, land, and water resources as interrelated parts of life-supporting ecosystems.  Resources should be conserved and protected to assure their future availability.  Pollution of these resources should be controlled to preserve the physical, chemical, biological integrity and protect public health. Water conservation is necessary. Public utilities must be efficient. Rate setting policies for utilities should include assistance for low-income individuals when energy policies bear unduly on the poor.  It is important to support and secure equal rights and opportunity for all and to promote social and economic justice for the health and safety of all Americans.

Submit your own individual written comments before January, 2025. The MPSC did confirm that we can submit comments at any time prior to the final vote on the MAWC rate request.

How to Submit Your Comments

When submitting written comments, please reference File No. WR-2024-0320.  Be sure to thank the Public Service Commission for allowing the public to comment.

You may choose to mail or email your comments, or to submit them electronically. Here are the details:

1. Send mail comments to:
Missouri Public Service Commission (MPSC)
200 Madison Street
PO Box 360
Jefferson City, MO 65102-0360, or
2. Email comments to pscinfo [at] psc.mo.gov (), or
3.File commentselectronically using the Commission’s electronic filing system

Some points you could make to the Commission include:

• This would be the second significant increase for Missouri American Water since May 2023.
• The rate increases unfairly raise the utility burden for people who are the most vulnerable: the low income, fixed income, and minority communities. Urge the MPSC to consider the increased financial burden when deciding on the rate increase, and perhaps to consider a modified rate for those individuals with greater financial burden. Ask the MPSC to work with MAWC to modify the rate to reduce the financial burden on those with limited and fixed income allowing them to afford necessities including food and medicine.
• MAWC has seen increased earnings, and the increase in the permitted ROE is unnecessary.
• MAWC must improve their public outreach regarding water conservation and assistance programs that can help their lower income customers.
• American Water must work to control their costs, seek alternative financing for major projects, and become more efficient.
• American Water must review timing of projects to reduce the need for this rate increase. 

For questions or more information, please email Mickey Croyle at environmentalquality [at] lwvstl.org.