Press Release

PUC Proposes Lower Rate Increases than Requested for Water Companies in Forest, Venango Counties

Published on 9/28/2006

Filed under: Water and Wastewater

HARRISBURG – The Public Utility Commission (PUC) today gave conditional approval to proposed rate increases for three water companies in Forest and Venango Counties.

        The Commission voted unanimously to offer the companies the option to accept the amended rate as presented. If the companies do not accept that rate, the Commission will suspend the proposed increases for up to seven months from their proposed effective dates and assigned the matter to a PUC administrative law judge for a recommended decision or settlement. A final decision would then be made at a public meeting in Harrisburg.

Forest County

        Under the Commission-approved rates, West Hickory Water Co. would increase rates by $10,422 (22 percent). The annual bill for an average customer using 48,000 gallons of water a year would increase by about $73. The average residential bill would increase from about $298 to $371. The company’s original proposal called for a rate increase of about $10,677 (25 percent) with average residential bills increasing to about $373 a year.

        West Hickory serves about 197 customers in Harmony Township. The company said the primary reasons for the rate increase are to provide the necessary revenues to cover operating expenses and to enable the company to make payments on its long and short-term debt. The proposed increase also will provide sufficient funds to cover investments required by the Company to continue to provide safe, reliable and adequate service to its customers.

Venango County

        Under the Commission-approved rates, Plumer Water Co. would increase rates by $1,590 (5.4 percent). The annual bill for an average customer using 42,000 gallons of water a year would increase by about $27. The average residential bill would increase from about $490 to $517. The company’s original proposal called for a rate increase of about $3,066 (10.4 percent) with average residential bills increasing to about $542 a year.

        Plumer Water serves about 61 customers in Cornplanter Township. The company said the primary reason for the rate increase is to pass through the $1.25 raise in purchased water costs received from the Rouseville Borough. The proposed increase also will provide sufficient funds to cover investments required by the Company to continue to provide safe, reliable and adequate service to customers.

        Under the Commission-approved rates, Venango Water Co. would increase rates by $30,288 (32.6 percent). The annual bill for an average customer using 60,000 gallons of water a year would increase by about $112. The average residential bill would increase from about $352 to $464. The company’s original proposal called for a rate increase of about $33,217 (35.8 percent) with average residential bills increasing to about $475 a year.

        Venango Water serves about 226 customers in Sugarcreek Borough. The company said the primary reasons for the rate increase are to provide the necessary revenues to cover operating expenses and enable the company to make payments on its long and short-term debt. The proposed increase also will provide sufficient funds to cover investments required by the Company to continue to provide safe, reliable and adequate service to its customers.

        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 Internet homepage at www.puc.state.pa.us.

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Docket No. R-00061558; R-00061561; R-00061560

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