Press Release

PUC Approves Lower Rate Increase than Requested for Clarendon Water Co.

Published on 8/21/2008

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted to approve a lower annual rate increase than requested by Clarendon Water Co.

The Commission voted 5-0 to approve the settlement between Clarendon Water Co., the state’s Office of Consumer Advocate (OCA) and the PUC’s Office of Trial Staff (OTS).  As part of the settlement, the company will be permitted to raise its annual rates no more than $21,684 with a phased-in increase.   Clarendon may collect one-half (or $10,842) in additional revenues once it obtains all the necessary permits from the Department of Environmental Protection (DEP) for the set up and operation of an arsenic removal system.  The company may begin collecting the remaining one-half, or $10,842, of additional revenues once it completes and certifies the completion of the following tasks:

• Seal the chlorine room so that it is completely air-tight and self-contained with a vent to the outside;
• Install a meter on each well to measure for unaccounted for water;
• Install blow valves at all dead ends in the distribution system;
• Flush the system at least one time.  The company must flush the system two more times in the first year after the first phase of the rate increase becomes effective and twice a year after that; and
• Provide copies of all water testing reports the company prepares and files with DEP to OCA, OTS and the Commission’s Bureau of Fixed Utility Services.

According to the settlement, during the first part of the phase-in, the customer charge portion of the monthly bill for average residential customers who use a five-eighths inch meter and 4,366 gallons of water per month, will increase from $10.68 to $11.34.  The consumption charge will increase from $2.57 to $3.01 for each additional 1,000 gallons used.  During the second part of the phase-in, the customer charge for these customers will increase to $12 per month, with consumption charges increasing to $3.45 for each additional 1,000 gallons consumed.  Under the terms of the settlement, the parties also agreed that the company will make a good faith effort to adopt and implement any Commission-approved recommendations with regard to the report provided by the Law Bureau related to the non-prosecutory investigation into Clarendon’s water quality.

On July 18, 2007, Clarendon Water Co. filed a rate increase request, proposing an increase of $38,842 in additional operating revenues to become effective Oct. 1, 2007.  The company voluntarily postponed the effective date until Nov. 1, 2007.  The filing was suspended by operation of law until June 1, 2008.  The company filed a tariff supplement agreeing to extend the statutory deadline by 120 days until Sept. 28, 2008, to allow for mediation.  The company filed another tariff supplement after submitting the settlement that extended the deadline until Oct. 28, 2008.

The company serves approximately 329 customers in portions of Warren County.  According to the company, the increase will assist in providing safe and adequate service to customers.

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-00072491; C-20067108

Contact:

• Denise McCracken
  Senior Communications Specialist
  717-787-5722
  demccracken@pa.gov