Press Release

PUC Approves Settlement for Lower Rates Than Requested by PA-American Water Co.

Published on 11/29/2007

Filed under: Water and Wastewater

HARRISBURG –  The Pennsylvania Public Utility Commission (PUC) today approved a settlement for lower rates than requested by Pennsylvania-American Water Co.

The Commission voted 4-0 to approve the settlement, which was reached between the company and the state’s Office of Consumer Advocate, the state’s Office of Small Business Advocate, the PUC’s Office of Trial Staff and consumers who had filed formal complaints. Under the settlement, the company will raise water rates by about $36 million (8.9 percent). The company’s original proposal increased water rates by about $59.2 million (14.7 percent).

The increase may become effective Nov. 30, 2007. Under the settlement, the company may not file for a rate increase until April 24, 2009. The settlement also increases the low-income customer charge discount from 50 to 65 percent and the shareholder’s funding for the company’s low-income hardship grant program from $100,000 to $150,000. The rate increase affects all 630,185 customers in some way. The company serves customers in 35 counties.

Under the settlement, the annual bill for an average residential customer using 54,000 gallons of water would increase about:

• $44 a year, from $468 to $512 (9.3 percent) in the Main Division;
• $18 a year, from $429 to $447 (4.2 percent) in Acquisitions; 
• $135 a year, from $377 to $512 (35.5 percent) in Connoquenessing;
• $115 a year, from $287 to $402 (39.9 percent) in Rustic Acres;
• $100 a year, from $412 to $512 (24.0 percent) in Reading;
• $118 a year, from $280 to $398 (42.2 percent) in Palmer;
• $98 a year, from $300 to $398 (32.6 percent) in Winona Lakes;
• $176 a year, from $278 to $454 (62.9 percent) in Blue Mountain Lakes;
• $130 a year, from $280 to $410 (46.2 percent) in Pine Ridge; and  

The rates for Pocono Farms customers will remain the same at about $280 a year.

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

Contact:

• Press Secretary
  717-787-5722