Press Release

PUC to Investigate Proposed Rate Increases for Wyoming County Water Company, Sewer Companies in Wyoming, Mercer, Lehigh Counties

Published on 9/28/2006

Filed under: Water and Wastewater

HARRISBURG – The Public Utility Commission (PUC) today voted to suspend and investigate proposed rate increases for a water company in Wyoming County and sewer companies in Mercer, Lehigh and Wyoming counties.

         The Commission voted 5-0 to 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.

Wyoming County

         Factoryville Bunker Hill Water Co. has proposed to increase water rates by $1,909 (20.6 percent) for its customers. Under the company’s proposal, the annual bill for an average customer using 60,000 gallons of water a year would increase by about $35 a year. The average annual residential bill would increase from about $170 to $205.

         Bunker Hill Sewer Co. has proposed to increase sewer rates by $13,474 (130.8 percent) for its customers. Under the company’s proposal, the annual bill for an average customer would increase by about $235 a year. The average annual residential bill would increase from about $180 to $415.

         The Commission has until May 1, 2007 to make a final decision in both cases at a public meeting in Harrisburg. Both companies serve about 57 residential customers in Clinton Township. The company said the primary reason for the rate increase is to bring the company to financial break-even point. The water company has not increased rates since 1997, while the sewer company has not increased rates since 1990.

Lehigh County

         Allied Utility Services Inc. has proposed to increase sewer rates by $183,902 (130.23 percent) for its customers. Under the company’s proposal, the annual bill for an average customer using 60,000 gallons of water a year would increase by about $519 a year. The average annual residential bill would increase from about $397 to $916.

         The Commission has until May 2, 2007 to make a final decision at a public meeting in Harrisburg. Both companies serve about 301 customers in North Whitehall Township. The companies said the primary reason for the rate increase is to realize a reasonable rate of return on the company’s fixed capital investment and to recover increased operating expenses.

Mercer County

         Reynolds Disposal Co. has proposed to increase sewer rates by $278,969 (87.7 percent) for its customers. Under the company’s proposal, the annual bill for an average customer using 60,000 gallons of water a year would increase by about $287 a year. The average annual residential bill would increase from about $315 to $602.

         The Commission has until April 29, 2007 to make a final decision at a public meeting in Harrisburg. Both companies serve about 658 metered customers and 22 unmetered customers in Pymatuning, Delaware and Hempfield townships. The company said the primary reason for the rate increase is to realize a reasonable rate of return on the company’s fixed capital investment. The proposed level of annual operating revenues will allow the company to provide proper maintenance to the system as well as recover the increased costs of operating the company.

         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-00061492; R-00061617; R-00061683; R-00061682

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