May 11—As Zak Decker strolls among lush plants, vibrant flowers and towering trees, he knows it takes one thing to keep it all blooming throughout the summer.
"I can't give you exact figures, but I can tell you we consume a lot of water here," said Decker, a retail associate at the Earl May Garden Center in St. Joseph. "Especially when it gets to the hotter months."
This summer, many consumers will start paying more to receive and possibly discharge the water they use in St. Joseph. State regulators approved a settlement agreement that allows Missouri American Water to raise its rates by 20% for residential customers in St. Joseph. Those new rates — $8.37 per 1,000 gallons — take effect at the end of May. There's also a $1 increase in the monthly meter charge.
At the same time, the St. Joseph City Council could vote Monday on a 4.25% increase in sewer rates. The city hasn't raised sewer rates since 2017.
"There has been significant inflation since that time," said Bryan Carter, the city manager. "We also have a year in fiscal 2026 with a particularly high debt load coming. We are building up a reserve to meet that obligation."
The council sets rates for the municipal sewer service and the Missouri Public Service Commission has ratemaking authority for investor-owned utilities like Missouri American. Utilities use rates to recoup the cost of past investments. Consumer groups, industrial users and municipalities weigh in on how much of the cost recovery should be absorbed by consumers as opposed to investors.
"We've done an incredible amount of investment to the infrastructure in St. Joseph proper," said Jody Carlson, the vice president of engineering and business development for Missouri American. "We have worked really hard these last three to four years to continue to make the investments that keep our system up and running and going. There are a lot of water districts and a lot of municipalities that are struggling to do that because those rates come with that."
The utility filed a rate case in 2022 that sought to generate an additional $99 million a year in revenue. The PSC-approved settlement allows $95 million in added annual revenue.
The impact for a typical residential customer will be $8.70 per month in St. Joseph and $5.64 in Missouri American's St. Louis district, which has a different rate structure. Missouri American hasn't raised its base rate in seven years.
Carlson said Missouri American's recent investments in St. Joseph include 14 miles of pipelines and 300 valves that make it easier to isolate the impact of a water main break. He said the company made improvements to a Faraon Street booster station that will enhance volume and pressure for future growth on the east side of town. At Frederick Avenue and 36th Street, a main-replacement project is underway to reduce service disruptions in that part of town.