Press Release

PUC Approves Rate Settlement with York Water Company

Published on 10/1/2004

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) yesterday approved a settlement that will allow York Water Company to increase water rates by $3.5 million in York County . The company had originally requested a $4.9 million increase.

Under the settlement, the average annual bill for a residential customer on a gravity system using 60,684 gallons of water will increase approximately by $41 from $252 to $293. The average annual bill for a residential customer on a repumped system will increase by $51 from $309 to $360, based on 52,128 gallons used per year. A gravity system uses gravity to move water to customers. A repumped system uses electric power to move water uphill throughout the system to customers.

As agreed to in the settlement, the increase will not become effective until Nov. 1 or until the company completes the Susquehanna River Project, whichever date is later. The project involves the construction of a pipeline to deliver water from the Susquehanna River to the company’s Lake Redman Reservoir.

“The drought conditions that have occurred over the past decade have made it imperative that York obtain an alternative water supply source,” PUC Administrative Law Judge Wayne Weismandel said in his recommended decision, which was adopted 5-0 by the Commission. “ York selected the lowest cost, and most environmentally friendly, solution: a raw water pipeline from the Susquehanna River to York ’s Lake Redman Reservoir. Although this is the most cost-effective alternative, it is still costly (approximately $23 million).

“However, the price of doing nothing in terms of personal health and safety, agricultural production, and industrial and commercial viability in the face of severe water shortages would be far more. All of York ’s ratepayers will face a more secure future because of this project.”

The rate increase will affect approximately 51,916 customers. The company last raised rates in June 2003, when the PUC approved a settlement allowing the company to raise rates by $1.7 million instead of $2.8 million as originally requested.

In June, the Commission voted to investigate the company’s request. On Aug. 30, ALJ Weismandel recommended approving the settlement. Parties to the settlement include the PUC’s Office of Trial Staff, the state Office of Consumer Advocate and the state Office of Small Business Advocate.

As part of the settlement, the company also agreed not to file for another general rate increase for at least one year.

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 stewards of competition.

For recent news releases, or more information about the PUC, visit our internet homepage at www.puc.state.pa.us.

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Docket No. R-00049165, R-00049165C0001, et al.

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