The water company is asking for a nearly 16 percent hike for residential customers, which would translate to over $8 a month in additional costs for the average ratepayer.
A witness for Kentucky American told the panel that oversees utilities in the state that the company is always trying to balance affordability with rising costs and what it argues are necessary projects.
"No one likes having increasing costs, but we feel like, as a company, we are absolutely doing right (as) stewards of our customers' dollars to provide these services reliably and to control the growth of costs as much as possible," he said.
Lexington Mayor Linda Gorton spoke before the PSC Tuesday, calling the rate increase an "outrage."
"Since I became mayor in 2019 the average residential monthly bill has already increased over 60%. If the PSC grants Kentucky-American's requested rates, this increases to over 86%," Gorton said.
Gorton also argued Kentucky American is not "serving the city well" and that construction projects have led to torn up streets and delays, but the PSC opted to dismiss the city's complaint. It did, however, give the city a chance to refile the case in 20 days.