Press Release

    HARRISBURG, Pa. - The Pennsylvania Public Utility Commission (PUC) today approved a settlement that will allow Pennsylvania-American Water Company to increase rates by $24.6 million (8.7 percent). The company had originally asked for a $40 million (14.2 percent) annual increase in water rates.

    Under the settlement, an average residential bill in each of the company’s six rate zones would increase to $33.10 a month based on 4,800 gallons of water used per month. The increase would establish uniform rates for general water service. For the majority of the company's residential customers - those in Zone 1- rates would increase approximately $2.13 (6.88 percent), from $30.97 to $33.10.

    The company may increase the rates one day after filing its compliance tariff with the PUC. As part of the settlement, PA-American is prohibited from filing another general rate increase for at least one year after the effective date of the settlement rates.

    The company filed its rate request on April 30 and the PUC instituted a formal investigation on May 21. The PUC held eight public input hearings in Tobyhanna, Scranton, Kingston, Camp Hill, Osceola Mills, Brownsville, Monongahela, and Mount Lebanon. A total of 59 complaints were filed against the proposed rates.

    Pennsylvania American Water Company serves approximately 540,000 customers in Pennsylvania. It last raised rates by $27 million in 1997.

    For recent news releases, or more information about the PUC, visit our Internet homepage: http://puc.paonline.com.

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