Press Release

PUC OKs Settlement for Lower Rates than Requested by a Montgomery County Water Co.

Published on 10/11/2007

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement for lower rates than requested by Audubon Water Co., Montgomery County.

The Commission voted 4-0 to approve the settlement, which was reached between the company and the state’s Office of Consumer Advocate, the PUC’s Office of Trial Staff and consumers who had filed formal complaints.

Under the settlement, the company will raise rate in two phases. During the first phase, the company will be permitted to increase rates by about $350,000 (21 percent). The first phase of the increase goes into effect once the company files a new tariff with the PUC.

Phase two rates are designed to produce additional annual operating revenue of $25,000. The phase two rates are contingent upon the company performing $50,000 of transmission and distribution system preventative maintenance by Dec. 31, 2008. The company may not file for another rate increase until October 2010, according to the settlement.

Phase one rates will increase the annual bill for an average residential customer using 60,000 gallons of water by about $78 from $381 to $459. Phase two rates will increase the annual bill for the same customer by about $6 to $465.

Under its original proposal, the company requested an increase of about $477,975 (28.7 percent). That proposal would have increased the annual bill for an average residential customer using 60,000 gallons of water would increase about $108, from $381 to $489.

The increases affect about 3,015 customers in Montgomery County.

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.

# # #

Docket Nos. R-00072100

Contact:

• Press Secretary
  717-787-5722