Press Release

PUC Finalizes $3,000 Pennsylvania American Water Co. Settlement

Published on 3/26/2009

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today finalized a settlement agreement that ends an informal investigation into an alleged failure to provide the required notices of termination at least three days prior to the scheduled terminations of service by Pennsylvania American Water Co. (PAWC).

The Commission voted 5-0 to approve the settlement agreement reached among PAWC, the PUC’s Law Bureau Prosecutory Staff and the PUC’s Bureau of Consumer Services.  The agreement directs the company to pay a $3,000 civil penalty and to pay individual restitution payments to the affected customers.

Commission Vice Chairman Tyrone J. Christy issued a statement.   “In December I requested that comments be filed regarding the concept of directing the $3,000 penalty under the settlement to PAWC's hardship fund, H20 Help to Others,” said Vice Chairman Christy.  “I am disappointed that no comments were filed.  I believe that providing additional assistance to low-income customers is an important consideration, particularly during these tough economic times during which many individuals are being forced to choose between paying for utility service and paying for other essentials for their families.”

On Dec. 17, 2007, Commission staff initiated an informal investigation into the company’s alleged failure to provide the required statutory notices of termination at least three days prior to the scheduled terminations of service.  As part of the investigation, Commission staff determined that the company violated a section of the Public Utility Code, resulting in 1,666 terminated accounts in August 2007.  Additionally, 697 of those affected customers had service restored within 24 hours, and 969 of those customers had service restored over 24 hours later.  The company required 1,236 of the affected customers to pay a reconnection fee in order to have their service restored. 

As part of the settlement, PAWC agreed to pay a $3,000 civil penalty and will provide each of the 969 customers who were terminated, but not reinstated within 24 hours, a $150 credit toward their accounts.  For each of the 697 customers who were terminated but reinstated within 24 hours, PAWC will provide a $125 credit toward their account.  Additionally, for each of the 1,236 customers who were improperly charged a reconnection fee, the company has either already provided a refund or will credit the full amount charged to their accounts. 

Also as part of the settlement, the company will begin a “spot check” process to ensure that the correct number of attempts is made prior to any discontinuance of service, and also will begin quality analysis and additional training.

By Order entered Dec. 23, 2008, parties had a 20-day period in which to file comments to the proposed settlement.  No party filed comments.

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. M-2008-2066530

Contact:

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