Press Release

PUC Approves Lower Rate Increase than Requested by MESCO Inc.

Published on 3/2/2006

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement of a wastewater rate increase request by MESCO Inc. that increases consumer rates, but not to the level the company originally requested.

Under the settlement, the annual bill for an average residential wastewater customer would increase by about $85 (23 percent) from $360 to $445. The company’s original proposal raised the average annual bill by about $276 (76.65 percent) to $636. The rate increase affects about 175 wastewater customers in Monaghan and Carroll townships, York County.

The Commission approved the settlement by a vote of 5-0. Under the settlement, MESCO agreed to retain a certified operator under contract for at least 18 months to take responsibility for operation of its sewage treatment plant. If the certified operator is hired, the company can increase rates again by about $85 (20 percent) from $445 to $530.

As part of the settlement, MESCO cannot apply for another rate increase for at least a year. The current rates have been in effect since 1991. The settlement also calls for the company to waive hook-up fees and previously collected hook-up fees totaling about $63,110. This will be considered contributions in aid of construction.

The Pennsylvania Public Utility Commission ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as responsible stewards of competition. For recent news releases, or more information about the PUC, visit our internet homepage www.puc.state.pa.us.

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Docket No:      R-00050678

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