Press Release

PUC Approves Lower Rate Increase than Requested by PA American Water

Published on 11/6/2009

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement approving a lower rate increase than requested by Pennsylvania American Water Co. (PAWC).

The Commission voted 4-0 to approve an annual increase of $30.75 million (6.6 percent) in operating revenues for the company. Commissioner Kim Pizzingrilli issued a statement. 

PAWC originally requested an annual increase of $58.06 million (12.5 percent).  The joint settlement was reached among the company, the Commission’s Office of Trial Staff, the Office of Consumer Advocate, the Office of Small Business Advocate and other formal complainants.  More information on the ratemaking process is available on the Commission’s website.

The average monthly bill for a residential customer using 4,200 gallons of water per month will increase by $3.16 from $42.98 to $46.14. The original proposal increased rates by $5.92 a month to $48.90.

The settlement also:

• Contains commitments by the company to resolve a number of consumer issues raised during the nine public input hearings held throughout the PAWC territory as part of the case;
• Incorporates several commitments to respond to concerns of Camp Hill, Pa., residents;
• Includes plans to install lines at company expense in specific areas of Washington County;
• Increases the annual shareholder contribution from $150,000 to $250,000 for its H₂O Help to Others Program, which provides grants, discounts and water saving devices and education to its customers; andPrevents the company from seeking another rate increase prior to April 21, 2011.

The company provides water service to approximately 635,000 customers in portions of Adams, Allegheny, Armstrong, Beaver, Berks, Bucks, Butler, Center, Chester, Clarion, Clearfield, Columbia, Cumberland, Dauphin, Fayette, Indiana, Jefferson, Lackawanna, Lancaster, Lawrence, Lebanon, Luzerne, McKean, Monroe, Montgomery, Northampton, Northumberland, Pike, Schuylkill, Susquehanna, Union, Washington, Warren, Wayne, and York counties.

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 Web site at www.puc.state.pa.us.

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Docket No. R-2009-2097323

Contact:

• Press Secretary
  717-787-5722