Missouri Water Rate Request
Missouri Water Rate Request to Support Infrastructure Upgrades
On March 13, 2024, Liberty Utilities (Missouri Water) LLC (doing business as Liberty) submitted a request with the Missouri Public Service Commission (MPSC) to adjust water and wastewater rates for its Missouri customers. Liberty operates 25 water systems and nine wastewater systems in Missouri. For most of these systems, it has been six years or longer since rates have been updated. The rate update process can take up to 11 months as the MPSC and other stakeholders carefully review Liberty’s request. If approved, new rates are expected to go into effect in February 2025.
Between 2018 and April of 2024, Liberty has invested or plans to invest approximately $19.5 million to improve and upgrade the water and wastewater systems serving communities throughout its Missouri service areas. If approved by regulators, the rate adjustment for Liberty’s investments will vary based on the water system. The average cost increase for a Liberty residential water customer using 5,000 gallons of water per month would be approximately $34 per month, with some water systems seeing a larger increase and some seeing a smaller increase. Liberty’s rate update request also includes changes to wastewater rates. These rate updates also vary based on the wastewater system. As part of its request, Liberty is proposing an alternative rate option for its wastewater customers that would help to minimize the bill impact for its smaller wastewater systems. This proposed rate update would increase the average residential wastewater customer’s costs an average of $27 per month, with some wastewater systems seeing a smaller increase and some seeing a larger increase. However, specific rate impacts for each water and wastewater system can be found below.
“Safe and reliable water and wastewater services are essential to our customers,” said Tony Penna, Vice President and General Manager, Liberty Central Region - Water. “Over the last several years we have purchased several distressed water and wastewater systems in need of upgrades and improvements. We’ve made and continue to make the necessary investments to help us deliver these safe and vital resources to the communities we serve. We also continue to strive to improve our customers’ experience and meet customer expectations. Seeking a change to customer rates is not a decision we take lightly. These prudent and necessary investments will help us to better serve our customers now and into the future.”
Key investments to benefit customers included in the rate update request:
- Keeping service reliable and communities safe by replacing aging water mains and distribution pipes and installing hydrants for fire service;
- Improving reliability through the installation of backup generators at well sites and facilities to reduce service disruptions due to power outages;
- Speeding response to potential service disruptions through the installation of well-monitoring equipment for issues such as loss of pressure and chlorine residuals;
- Bolstering customer service through improved communication platforms that allow for email and text notifications and the installation of smart meters that automate meter reading; this means few to no estimated bills for customers;
- Adding capacity to improve reliability with a new well planned in the Taney County service area and by replacing storage tanks, installing high-service pump stations, and upgrading wastewater plants;
- Investments in cybersecurity and safeguarding vital infrastructure to protect service through security upgrades at our facilities.
At a Glance
- Approximately 12,100 water and 4,900 wastewater customers served.
- Last rate update was effective six years ago, or more.
- Approximately $19.5 million invested between 2018 and April 2024. This includes:
- Replacing aging water mains and distribution pipes and installing hydrants for fire service
- The installation of generators at well sites and facilities, and well-monitoring equipment
- Bolstering customer service through improved communication platforms and the installation of smart meters
- Adding capacity with a new well in the Taney County service area and installing high-service pump stations and upgrading wastewater plants
- Investments in cybersecurity and safeguarding vital infrastructure
- If approved by regulators, the average residential water customer using 5,000 gallons of water per month would see an increase of approximately $34 per month, and the average residential wastewater customer an average of $27 per month. Some customers will see a smaller increase and some a larger increase.
FAQs
A rate request is a public regulatory review process in which a utility must demonstrate to its state public service commission why a proposed change in rates is needed. This independent public process helps ensure transparency and fair rates based on the costs to serve customers.
Liberty is required to provide its customers with safe and reliable service at rates approved by the public service commission of each state it serves. In exchange, the utility is allowed the opportunity (not a guarantee) to earn a fair return for investors. Even though our regulators will ultimately determine any changes to customer rates, we pledge to do our part to keep rates as reasonable as possible.
First, Liberty must demonstrate to state utility regulators why a rate change is needed. The Missouri Public Service Commission (MPSC) and other interested stakeholders review our filings and vet the company's request. The MPSC then thoroughly reviews our request and holds public hearings to allow customers to comment. This process could take up to 11 months.
Liberty offers programs to encourage water conservation and assist our limited-income customers. Liberty also provides flexible payment options to customers who may be experiencing financial hardship.
Liberty works with agencies to assist limited-income customers. Liberty also provides flexible payment options, for residential and business customers to allow for additional time to spread out past due balances and make payments more manageable. Customers can learn more about our assistance options here.
Liberty has a list of various agencies that may be able to provide financial assistance for some portion of the utility bill. This list is available on our website or customers can call our Customer Care team at 1-800-206-2300.
We also encourage customers to check for leaks and practice smart water use. A leaky toilet, faucet, or showerhead will increase your water usage which ultimately increases your bill. Our website has conservation tips to help you save.
Customer benefits from proposed consolidation of rates:
As part of its request, Liberty seeks to consolidate rates and move from 15 individual water tariff rate areas and five individual wastewater tariff rate areas to two tariff rate areas for each modality (water and wastewater). This consolidation will benefit customers through:
- More consistent rules across water and wastewater service areas, improving customer service and easing potential confusion;
- Spreading the costs of critical investments in community water and wastewater systems across a larger base of customers, helping to support affordable access to safe, quality water for all Liberty Missouri water customers.