Press Release

PUC Approves United Water Request to Increase Surcharge for Infrastructure Improvements

Published on 12/19/2013

Filed under: Water and Wastewater

The Commission voted 5-0 to allow United Water to increase its surcharge cap from 5 percent to 7.5 percent.  When the cap is reached, the DSIC surcharge for an average residential customer using 4,000 gallons of water a month would increase $0.87, from about $1.73 to $2.60 a month.

The Commission has urged the use of system improvement charges to allow water, natural gas and electric companies and wastewater companies to use a surcharge on customers’ bills to accelerate the replacement of existing aging facilities that otherwise will occur if the utility must wait until the completion of a rate case to begin receiving a return on its investment.  System improvement charges reduce the frequency and the associated costs of base rate cases while maintaining a high level of customer protections.

System improvement charges are designed to provide ratepayers with improved service quality; greater rate stability; fewer main breaks; fewer service interruptions; increased safety; and lower levels of unaccounted for energy or wastewater.  In light of today’s difficult financial markets, system improvement charges are the type of innovative regulatory policies expected as rating agencies tighten ratings benchmarks and are a key element in maintaining access to capital markets on reasonable terms.

The DSIC has had substantial impact on accelerating infrastructure remediation in Pennsylvania.  United Water estimates that increasing the DSIC will allow it to reduce the frequency of base rate case filings, reduce non-revenue water, enhance fire protection and reduce service and public disruptions and low pressure.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility. “Like” PAPowerSwitch on Facebook for easy access to information on electric shopping.

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Docket No. P-2013-2389331

Contact:

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