Press Release

PUC OKs Settlement for Lower Rates than Requested by Lycoming County Water Company

Published on 1/10/2008

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement for lower rates than requested by Village Water Co., Lycoming 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 phase-in the rate increase.  During the first phase the company will be permitted to increase rates by about $22,500. The first phase of the increase goes into effect once the company files a new tariff with the PUC. Phase two is designed to produce additional annual operating revenue of $7,500 a year later.

The borough may not file another base rate increase for two years, according to the settlement.

Phase one rates will increase the quarterly bill for an average residential customer using 12,000 gallons of water by about $26, from $81 to $107. Phase two would increase the quarterly rate for the same customer by about $9 to $116. 

Under its original proposal, the borough requested an increase of about $42,575 (61 percent).  That proposal would have increased the quarterly bill for an average residential customer using 12,000 gallons of water about $50, from $81 to $131.

The increase affects about 215 customers in portions of Fairfield Township, Lycoming 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, 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-00072351

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