Gorton issued a sharp critique of the water company before the PSC, questioning the need for and frequency of requested rate hikes.
"This company we do not believe is serving Lexington well. There have been three rate cases in three years and the second in less than 12 months. This is unprecedented and this is an outrage for our people," she said during public comment.
The mayor also reiterated the city's complaints about Kentucky American's recent projects, including a water main repair.
"In addition to higher costs, we are currently experiencing unreasonable construction practices from Kentucky American. These practices have kept Lexington streets torn up all summer. The complaint we filed provided considerable detail," Gorton added.
But the PSC ultimately rejected Lexington's complaint while still allowing the city to refile the case within 20 days.
A Kentucky American spokesperson said the company agrees with the dismissal and stands by its work. Regarding the rate increase, the company acknowledged the requests have not been submitted at the "typical cadence," but added that the latest request is necessary to support the "pace and level of infrastructure investment for the continuation of system resiliency, quality service, and public health."
Kentucky American says the increase will support plans to invest $108 million toward modernizing and strengthening its water systems and repairing aging pipes, among other projects.