Water bills in Kentucky are a growing concern, with a recent report revealing a troubling trend. The Appalachian Citizens' Law Center (ACLC) has uncovered a practice that disproportionately affects low-income households: water utilities penalizing ratepayers with disconnections, late fees, and additional charges. This issue is particularly pressing given the rising cost of living and the increasing number of households facing financial strain.
The ACLC's analysis of 114 regulated water systems in Kentucky between 2023 and 2024 found that nearly two-thirds of households disconnected from the water main owed $50 or less. This is a stark reminder of the financial burden that water bills can place on already struggling families. What's more, the majority of these regulated water companies impose punitive fees for late payments and disconnections, exacerbating the affordability crisis.
The report highlights a concerning disconnection rate of around 9% in Kentucky, which is significantly higher than the national average of about 5%. This discrepancy underscores the unique challenges faced by Kentuckians in managing their water bills. The ACLC's Director of Policy, Rebecca Shelton, emphasizes the compounding effect of these fees, making it nearly impossible for those already in financial distress to catch up.
The situation is further complicated by the rising cost of drinking water nationwide. A 2024 EPA assessment revealed that millions of American households lack access to affordable water. In Kentucky, the ACLC's previous study found that community water rates exceed median household income in nearly 4.5% of census tracts, and a staggering 70% of these rates are deemed too expensive for marginalized, low-income residents.
The report's recommendations are comprehensive and aim to address the systemic issues within the water utility sector. It calls for a ban on late fees for regulated utilities, especially for low-income customers, and a cap on disconnection fees at $100. The ACLC suggests that disconnections should be prohibited during periods when reconnection is unlikely, such as holidays and weekends.
Additionally, the report emphasizes the need for the Kentucky PSC to take action. It recommends that the PSC investigate the discrepancies in reconnection fees and establish equitable rate designs and management programs. By forgiving debts and creating flexible payment schedules, the PSC can help alleviate the financial burden on ratepayers.
The ACLC's findings highlight a critical issue that demands attention. Water bills, often overlooked, can become a significant source of financial stress for low-income families. It is essential to address these practices and ensure that water utilities are providing fair and affordable services to all Kentuckians. The report's recommendations offer a starting point for much-needed reform in the water utility sector.
