Press Release

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today denied Pennsylvania American Water Company’s request to establish a facility protection charge (FPC) to pay for security costs, but said the company could try to recover the costs in its pending application to increase base rates.

The water company wanted to charge residential customers approximately $15 a year to help pay for security-related measurers put in place following Sept. 11, 2001.

On a joint motion by Chairman Terrance J. Fitzpatrick and Commissioner Kim Pizzingrilli, the Commission voted 5-0 to deny the request for the FPC. The commissioners ruled that the utility did not demonstrate that its expenditures were prudently incurred. (Chairman Fitzpatrick/Commissioner Pizzingrilli motion, Commissioner Glen R. Thomas statement)

PUC administrative law judges held four public input hearings throughout the state in February to receive comments from the public. Sixty-three customers filed formal complaints against the proposed surcharge. On May 20, Administrative Law Judge Debra Paist issued a recommended decision denying the request.

Pennsylvania American filed for a $64 million general rate increase on April 30.

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 Internet homepage at www.puc.paonline.com.

Docket No. R-00027983, R-00027983C0001 through R-00027983C0065 and C-20029149