HERSHEY, Pa.--(BUSINESS WIRE)--Pennsylvania American Water announced today that most of its water and
wastewater customers will start seeing lower monthly bills as a result
of the federal Tax Cuts and Jobs Act of 2017. Starting July 1, 2018, the
decrease will appear on customers’ bills as the “Fed Tax Adjust
Surcharge” to reflect the company’s reduced tax expense. For customers
who receive both water and wastewater service from Pennsylvania American
Water, their monthly bills will reflect a credit for each.
On May 17, 2018, the Pennsylvania Public Utility Commission (PUC) issued
an order directing 17 electric, natural gas, and water and wastewater
utilities, including Pennsylvania American Water, to implement a
“negative surcharge” or monthly credit on customer bills. The PUC’s
order cited decreased federal corporate tax rates and other tax changes
under the Tax Cuts and Jobs Act of 2017, which impacted the tax
liability of many utilities. The PUC projected the savings for the
utilities’ customers at more than $320 million per year.
“The reduced tax expense amounts to approximately $47 million annually
for our company,” said President Jeffrey L. McIntyre of Pennsylvania
American Water, “so we are following the PUC’s directive and passing the
savings to our customers.”
Water: Nearly 6.8 percent decrease for most customers. For
example, a water customer who typically uses 3,000 gallons per month
will see $3.61 savings, or $43.32 per year. For water customers who
typically use 5,000 gallons per month, the savings will be $5.27, or
$63.24 per year.
Wastewater: Nearly 7.7 percent decrease for most customers. For
example, a wastewater customer who typically uses 3,000 gallons per
month will see $4.25 savings, or $51 per year. For wastewater
customers who typically use 5,000 gallons per month, the savings will
be $6.58, or $78.96 per year. (Reductions for Scranton and Dunmore
wastewater customers and New Cumberland wastewater customers are
slightly less due to the lower rates established in the company’s most
recent rate filing last year.)
McIntyre said customers will continue to receive the federal tax
adjustment until Pennsylvania American Water files for and receives
approval from the PUC on its next base rate case.
You can also access video of McIntyre’s comments about the impact of the
federal tax adjustment at http://bit.ly/2tPjDjb.
Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK),
is the largest investor-owned water utility in the state, providing
high-quality and reliable water and/or wastewater services to
approximately 2.4 million people. With a history dating back to 1886,
American Water is the largest and most geographically diverse U.S.
publicly traded water and wastewater utility company. The company
employs more than 6,900 dedicated professionals who provide regulated
and market-based drinking water, wastewater and other related services
to an estimated 15 million people in 46 states and Ontario, Canada.
American Water provides safe, clean, affordable and reliable water
services to our customers to make sure we keep their lives flowing. For
more information, visit amwater.com
and follow American Water on Twitter,