Press Release

HARRISBURG, Pa. – The Pennsylvania Public Utility Commission (PUC) today approved a settlement that will allow Honesdale Consolidated Water Company to increase rates by $65,000 (9.66 percent). The company can increase rates on one day’s notice after the commission’s order has officially been entered.

Honesdale Consolidated Water Company had requested a $107,523 (12.1 percent) rate increase.

Under the settlement, the annual bill for a metered residential customer using 40,000 gallons of water per year would increase $26 from $268 to $294.

The settlement reduces the water allowance at all meter sizes. The current allowance of 12,000 gallons for a residential meter will be reduced to 6,000 gallons. Once a customer uses more than 6,000 gallons the water rate increases.

The settlement will also allow customers to receive a rate decrease. Customers using less than 6,000 gallons of water per quarter will see their rates decrease from $67 to $60, or 10 percent. Customers using approximately 7,000 gallons of water per quarter will see their rates drop from $67 to $64, or 5 percent.

Honesdale will also conduct a leak survey of its distribution system to be completed by June 1, 2001. After reviewing the results of the leak survey, the water company will take necessary steps to reduce the amount of unaccounted water and improve the efficiency of the system.

Honesdale has also agreed not to file for another general rate increase for at least 12 months. This will give customers rate stability for at least one year.

The PUC’s Office of Trial Staff, the state’s Office of Consumer Advocate and Honesdale Consolidated Water Company agreed to the settlement.

Honesdale first filed for the rate increase on June 30, 2000. Administrative Law Judge Ky Van Nguyen recommended on February 8, 2001, that the settlement be approved.

Honesdale Consolidated Water Company serves approximately 1,800 residential, commercial and industrial customers in the Borough of Honesdale, and the townships of Dyberry and Texas in Wayne County.

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