Press Release

PUC Investigates Rate Increase Request by Montgomery County Water Co.

Published on 4/24/2007

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted to suspend and investigate a rate increase request by Audubon Water Co., Montgomery County.

By order of law, the proposed increase will be suspended for up to seven months.  The Commission voted to assign the proposals to a PUC administrative law judge for a recommended decision or settlement.  PUC Commissioners will then make a final decision by Dec. 5, 2007, at a public meeting in Harrisburg.

The company is requesting an increase of about $477,975 (28.7 percent). Under the company’s proposal, the annual bill for an average residential customer using 60,000 gallons of water would increase about $108, from $381 to $489. The increase would affect about 3,015 customers in Montgomery County.

According to the company, the increase is necessary to restore the company’s rate of return and net operating income to a more reasonable level, to recover a return on and a return of the company’s increased of investments in the water plan that have occurred or will occur on a pro forma basis since its prior rate case filing in 2002.

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 news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

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Docket No. R-00072100

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