Press Release

HARRISBURG, Pa. - The Pennsylvania Public Utility Commission (PUC) has approved a settlement that will allow the city of Lancaster to increase water rates by $905,000 (14.8 percent) to suburban customers living outside the city limits. The increase will be phased in with two steps six months apart.

The company had requested a $999,989 (15.46 percent) annual rate increase.

Under the settlement the average residential bill will increase approximately $5 per quarter based on 17,000 gallons of water used per quarter. The first step will raise the average bill $3, from $36 to $39. Six months later, the second step will raise the rate to $41. The increase will affect 23,312 residential customers in Lancaster County.

The proposed increase will become effective on one day’s notice after the Commission’s order is officially entered. Administrative Law Judge Louis G. Cocheres recommended on Aug. 2, 2001, that the settlement be approved.

The company said it needs to raise rates to recover increased operating expenses. The city’s last approved rate increase was in 1999.

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