Press Release

PUC Approves Rate Increase Lower than Requested by Aqua PA

Published on 6/22/2006

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement of a rate increase request by the Aqua Pennsylvania Inc. that increases consumer rates, but not to the level the company originally requested.

The Commission unanimously voted to approve the settlement, which will produce an additional $24.9 million (9.2 percent) in annual operating revenue, which is less than the $38.8 million (14.4 percent) originally requested by the company.

As part of the settlement, the company cannot apply for another rate increase until after Nov. 18, 2007. The settlement was reached between the company and the parties who filed formal complaints against the proposal including the Office of Consumer Advocate, Office of Small Business Advocate, Aqua Large Users Group, the boroughs of Sayre, South Waverly and Athens and Plymouth Township as well as individual consumers.

Under the settlement, the annual bill for the average customer will increase by about $40 to about $495. The company’s original request increased the annual bill for the average customer to about $520.

The increase would affect approximately 400,000 customers in Adams, Berks, Bradford, Bucks, Carbon, Chester, Columbia, Cumberland, Delaware, Juniata, Lackawanna, Lawrence, Luzerne, Mercer, Montgomery, Monroe, Northampton, Northumberland, Pike, Schuylkill, Susquehanna, Snyder, Wayne and Wyoming counties.

Aqua Pennsylvania said the primary reason for the rate increase was the quarter of a billion dollars the company invested in capital improvements since its last rate request in July 2004. The company also cited upgrades it has made to its treatment facilities required to meet federal Environmental Protection Agency standards and a new radio frequency metering system as reasons for the increase.

The Pennsylvania Public Utility Commission ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as responsible stewards of competition. For recent news releases, or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No:      R-00051030

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