Press Release

PUC to Investigate Proposed Rate Increases for Water Companies in Lackawanna, Monroe and Northampton Counties

Published on 8/27/2009

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted to investigate proposed annual rate increases for Birch Acres Water Works Inc. (Birch Acres), Lake Spangenberg Water Co. (Lake Spangenberg) and Utilities Inc. – Westgate.

The Commission voted 5-0 to investigate the proposed increases.  The matters will be suspended for up to seven months and will be assigned to the Office of Administrative Law Judge for public hearings and a recommended decision or settlement.  More information on the ratemaking process is available on the Commission’s website.

Birch Acres is proposing an increase in annual rates of $15,804 (74 percent).  Under the proposal, the total quarterly bill for the average residential customer using 15,000 gallons of water would increase by $97.68 from $132 to $229.68 per quarter.   The company provides metered water service to 46 customers in a portion of Smithfield Twp., Monroe County.  According to the company, the increase is needed to cover increased operational costs.

Utilities Inc. – Westgate is proposing an increase in annual rates of $158,326 (45.4 percent).  As part of the company’s proposal, the average monthly bill for 5/8” residential customers will increase by $17.22 from $36.80 to $54.02 a month.  The company provides service to approximately 760 customers in Hanover Twp., Northampton County.  According to the company, the increase is needed to cover increased operational costs and plant investment.

Additionally, Lake Spangenberg has proposed an increase in annual rates of $92,292 (300 percent).  According to the company’s proposal, the quarterly bill for an average customer using 7,000 gallons per quarter would increase by $162.12 from $54.04 to $216.16 per quarter.  The company provides water service to approximately 145 customers in Jefferson Twp., Lackawanna County.  According to the company, the increase is necessary to recover operating expenses and debt incurred in its facilities replacement.

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 Nos. R-2009-2110093; R-2009-2117389; R-2009-2115743

Contact:

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