Press Release

PUC OKs Settlement for PA American Water to Continue to Increase Water Pressure in Cumberland County Municipalities

Published on 6/18/2009

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement that will allow the Pennsylvania American Water Co. (PAWC) to proceed with planned water pressure increases.

The Commission voted 5-0 to approve the settlement, which was reached between the company, the Office of Consumer Advocate, Camp Hill Borough and Lower Allen and Hampden townships. Commission Chairman James H. Cawley issued a statement.

The settlement allows the company to move forward with incremental water pressure increases on an agreed-upon schedule that is designed to ensure minimum disruption of water service.

The settlement also:

• Increases communications between the company, emergency service providers and consumers;
• Provides for after-the-fact monitoring and recognition that the water system in the area should receive additional technical considerations because of the increases including placing contractors and neighboring water systems on notice;
• Ensures sufficient standby resources to respond to pressure-related events;
• Provides for additional line monitoring and personnel during the increases so the company can respond to any events; and
• Establishes the circumstances where PAWC will use its contractors to repair damage to lines and pipes if due to pressure increases including forwarding damage claim to real and personal property to the company’s insurer for evaluation.

As the final part of a $60 million infrastructure improvement project in Cumberland County, PAWC said it needed to increase the system’s water pressure to address, among other things, complaints of low water pressure and to improve fire protection. Beginning in November 2008, the municipalities filed various objections to the water pressure increases with the PUC due to water main breaks that were occurring. The PUC ordered PAWC to stop the increases to allow for hearings to address the municipalities’ concerns. The parties then reached a settlement.

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 website at www.puc.state.pa.us.

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Docket No. P-2008-2075142; C-2008-2076720

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