Press Release

PUC Investigates Rate Increase Request by PA-American Water Co.

Published on 6/21/2007

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted to suspend and investigate a rate increase by Pennsylvania-American Water Co.

By order of law, the proposed increase will be suspended for up to seven months. The Commission voted to open an investigation and assign the proposals to a PUC administrative law judge for a recommended decision or settlement. PUC Commissioners will then make a final decision by Jan. 26, 2008, at a public meeting in Harrisburg.

The company is requesting an increase of $59,236,366 (14.73 percent).

Under the company’s proposal the annual bill for an average residential customer using 54,000 gallons of water would increase:

• About $72, from $468 to $540 (15.36 percent) in the Main Division;
• About $18, from $429 to $447 (4.19 percent) in Acquisitions;
• About $162, from $377 to $540 (42.95 percent) in Connoquenessing;
• About $253, from $287 to $540 (88.13 percent) in Rustic Acres;
• About $128, from $412 to $540 (30.89 percent) in Reading;
• About $260, from $279 to $540 (92.97 percent) in Palmer;
• About $240, from $300 to $540 (80 percent) in Winona Lakes;
• About $261, from $278 to $540 (93.88 percent) in Blue Mountain Lakes;
• About $130, from $280 to $410 (46.15 percent) in Pine Ridge; and
• About $123, from $280 to $403 (43.74 percent) in Pocono Farms.

The change in rates will affect all 630,185 customers in some way. PA-American serves customers in 35 counties.

According to the company, the proposed increase in revenues is the minimum increase necessary to permit the company to preserve public health and safety by investing in new utility plant.

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-00072229

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• Press Secretary
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