Press Release

PUC Proposes Lower Rate Increase for Northampton Co. Water Company than Requested

Published on 10/19/2006

Filed under: Water and Wastewater

HARRISBURG – The Public Utility Commission (PUC) today gave conditional approval to a proposed rate increase for a Northampton County water company.

The Commission voted 4-0 to offer Utilities Inc. – Westgate the option to accept the amended rate as presented. If the company does not accept that rate, the proposal will be suspended for up to seven months from the proposed effective date and assigned 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.

Under the Commission-approved rates, Utilities Inc. would increase rates by $95,917 (39 percent). The annual bill for an average customer using 60,000 gallons of water a year would increase by about $116. The average residential bill would increase from about $284 to $400. The company’s original proposal called for a rate increase of about $161,255 (73 percent) with average residential bills increasing to about $492 a year.

Utilities Inc. serves about 720 customers in Hanover Township. The increased water rates are sought to resolve the water problems experienced by their customers, including poor taste, an unpleasant odor, and "hard" water damaging pipes, fixtures and appliances in customer homes.  Consistent with the terms of a recent complaint settlement, Utilities Inc. will make the necessary engineering, technical and administrative improvements to interconnect to the City of Bethlehem’s water. Among further enhancements to improve service to customers are the creation of a customer advisory board, a new format for customer bills, the change from a quarterly to a monthly billing cycle, and the inclusion of water-conservation information through bill inserts.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent new releases, audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No. R-00061592

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