Press Release

PUC to Investigate Proposed Surcharge Increase by Aqua PA

Published on 2/5/2009

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted to investigate a proposal by Aqua Pennsylvania Inc. to increase its distribution system improvement charge (DSIC).

The Commission voted 5-0 to investigate a proposal by the company to increase its DSIC surcharge cap from 5 percent to 7.5 percent. Commissioner Robert F. Powelson issued a statement.

The proposal is suspended until Sept. 6, 2009, and will be assigned to the Office of Administrative Law Judge for public hearings and a recommended decision or settlement.  Under the proposal, the maximum increase for an average residential customer would be about $1.28 a month.

Implemented in 1997, DSIC is an automatic adjustment charge that enables companies to recover certain infrastructure improvement costs between base rate cases through a surcharge on customers’ bills.  The DSIC resets to zero when a company files a base rate case or if the utility is over-earning. The company also must notify customers of any change in the DSIC. An annual reconciliation audit is conducted by the PUC to ensure that no over-collections or under-collections have occurred.

Aqua serves 404,947 customers in 22 counties across Pennsylvania.

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-2008-2079310

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