Press Release

PUC Approves Lower Rate Increase than Requested by Reynolds Water Co.

Published on 8/3/2018

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) voted to approve a settlement agreement for the rate increase request by Reynolds Water Company, located in Mercer County.

The Commission voted 5-0 to approve the joint settlement which provides for an increase in annual operating revenues of $158,600 (30.4 percent increase) in two phases. The original request was for $236,389 (45.4 percent increase).

The settlement was reached among the PUC’s independent Bureau of Investigation and Enforcement, the state’s Office of Consumer Advocate and the Company. Under the settlement, the quarterly cost of water service for the average residential customer using 9,000 gallons of water per quarter will increase from $92.76 to $120.96 (30.4 percent) over the two phases. Under Phase I, the quarterly cost of water service to a residential customer will increase by approximately $19.77, or 21.31 percent, from $92.76 to $112.53. Under Phase II, the quarterly cost of water service for a residential customer will increase by an additional $8.43, or 7.49 percent, from $112.53 to $120.96.

The settlement agreement also contains certain system infrastructure improvements for the Reynolds Water Company’s utility facilities, including the replacement of 500 feet of an eight-inch water main under the Shenango River.  Subject to certain conditions, the company will not file a general rate increase until two (2) years following the effective date of the Phase II revenue and rate increase.

Additionally, the Reynolds Water settlement addresses issues related to the impact of the federal Tax Cuts and Jobs Act, requiring a one-time bill credit of $1.00 per customer. The credit will be paid on the first billing cycle after the Commission approves the settlement. 

The company serves approximately 722 customers in Pymatuning, Delaware, and Hempfield townships, Mercer County.

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.

Visit the PUC’s website at www.puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on Twitter, Facebook, LinkedIn, Instagram and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket No. R-2017-2631441

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov