HERSHEY, Pa.--(BUSINESS WIRE)--The Pennsylvania Public Utility Commission (PUC) today unanimously
approved a settlement that allows Pennsylvania American Water to raise
water and wastewater rates, effective January 1, 2018. The primary
factor behind the rate increase is the approximately $1.26 billion of
investments to replace and upgrade aging infrastructure since its last
rate case in 2013.
“We are pleased the commission has approved this fair and reasonable
settlement, which balances our customers’ interests with the much-needed
investments we make to ensure reliable, quality service,” said
Pennsylvania American Water President Jeffrey McIntyre. “We appreciate
the diligence and cooperation of the PUC Bureau of Investigation and
Enforcement, Office of Consumer Advocate, Office of Small Business
Advocate and other intervenors who made it possible to reach this
McIntyre said the approximately $1.26 billion in improvements for
treatment plants, storage tanks, wells and pumping stations reflect a
commitment to protect public health in the more than 400 communities
served by Pennsylvania American Water. The investments also include
replacing nearly 450 miles of aging pipe, as well as valves, service
lines, hydrants and other parts of the company’s nearly 10,700-mile
network of water and sewer lines.
The typical monthly residential water bill for Pennsylvania American
Water customers using 3,630 gallons will increase by $5.22 per month,
from $55.63 to $60.85. When the new rates take effect January 1, it will
be the company’s first base rate increase in four years.
With the approved rate increase, the average family will receive a day’s
worth of water for cooking, bathing, cleaning, drinking and all other
purposes for around $2.00. “We believe the clean, safe and reliable
service we are providing for communities remains a remarkable value,”
The settlement approved by the PUC includes adjustments to wastewater
rates for customers served by the company’s 16 wastewater systems. The
changes affect Pennsylvania American Water’s approximately 55,000
wastewater customers in Adams, Beaver, Chester, Clarion, Cumberland,
Lackawanna, Monroe, Northumberland, Pike, Washington and York counties.
Additional water and wastewater rates information is available on the
company’s website under Customer Service & Billing, and click on Your
Water Rates link (https://amwater.com/paaw/customer-service-billing/your-water-rates
As part of the settlement, Pennsylvania American Water will increase its
annual contribution to its Help to Others (H2O) Program™, which assists
disadvantaged and low-income customers. The program provides water and
wastewater customers who qualify with grants of up to $500 per year,
discounts on the monthly bill and water-saving devices and education.
The company’s annual contribution will increase from $310,000 to
$450,000 to support the H2O Program, which the company funds through
matching customer and employee donations.
The settlement will result in an increase of approximately $62 million
in annual revenue. The company had filed its original rate request with
the PUC on April 28, 2017, seeking an annual revenue increase of
approximately $107.9 million.
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 2.3 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 6,800 dedicated professionals who provide regulated
and market-based drinking water, wastewater and other related services
to an estimated 15 million people in 47 states and Ontario, Canada. More
information can be found by visiting www.amwater.com.