Press Release

PUC Approves Settlement that Includes Refunds for PA American Wastewater Customers

Published on 9/15/2006

Filed under: Water and Wastewater

HARRISBURG – The Public Utility Commission (PUC) today approved a settlement that will provide refunds for about 14,000 wastewater customers of the Pennsylvania American Water Co. (PAWC).

The Commission voted 5-0 to approve the settlement that will refund about $85,000 to the company’s wastewater utility customers with 6 percent interest. Commissioner Kim Pizzingrilli made a statement on the decision. The settlement was reached between the company, the state’s Office of Consumer Advocate, the state’s Office of Small Business Advocate and the Commission’s Office of Trial Staff.

Under the settlement, PAWC will determine on an individual customer basis the amount billed under the Collection System Improvement Charge (CSIC) and the amount of interest due. The company will refund customers through a one-time billing credit or refund check. PAWC has three wastewater systems: Pocono Country Place, Monroe County; Coatesville, Chester County; and Lehman Pike, Pike County.

The refund is the result of a Commonwealth Court ruling that said that the surcharge means “utilities can recover their capital costs without any incentive to invest wisely and efficiently.” The CSIC was intended to recover the fixed costs of a wastewater utility plant that are completed and placed in service between base rate cases. With PUC approval, PAWC included a separate charge for the CSIC on the bills of its wastewater customers beginning April 1, 2004 and continuing until March 31, 2006.

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 stewards of competition. For recent new releases, or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No. R-00027982

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