Press Release

PUC Investigates Bethlehem City Water Rate Increase Request

Published on 8/8/2007

Filed under: Water and Wastewater

HARRISBURG –The Pennsylvania Public Utility Commission (PUC) today voted unanimously to investigate a request by the City of Bethlehem to increase rates for customers residing outside of the city.

The city is requesting an increase of about $827,455 (11.8 percent). Under the city’s proposal, the annual bill for an average residential customer using 60,000 gallons of water would increase about $36, from $288 to $324.

The increase would affect about 12,896 customers living outside of the city. The PUC only has jurisdiction over the rates for customers residing outside of the city limits. A similar rate increase is being proposed for the 22,959 customers living inside the city limits, however, that is not subject to PUC review.

By order of law, the proposed increases 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 March 28, 2008, at a public meeting in Harrisburg.

According to the city, the increase is necessary to provide sufficient revenues to allow the city to provide adequate, safe and reliable drinking water; to provide the cash flow necessary to continue to operate, maintain and renew its facilities properly and meet financial obligations and to afford the opportunity to achieve an adequate rate of return.

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, or more information about the PUC, visit our Internet homepage www.puc.state.pa.us.

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Docket No. R-00072492

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