Press Release

PUC Approves Settlement for Smaller Than Requested Rate Increase for Audubon Water Company

Published on 3/11/2021

Filed under: Water and Wastewater

Reduced Rate Changes to be Implemented Over a Two-Year Period; Enhancements to Fire Hydrant Systems Also Required

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement that includes a smaller than requested increase in rates for the Audubon Water Company, which is to be implemented over a two-year period to further reduce the impact on consumers.  Audubon serves approximately 2,800 customers in portions of Lower Providence Township, Montgomery County, Pennsylvania.

The Commission voted 4-0 today to approve a joint petition for settlement that was submitted by Audubon, along with Lower Providence Township, the PUC’s independent Bureau of Investigation and Enforcement, the Pennsylvania Office of Consumer Advocate and the Office of Small Business Advocate.

Under the terms of the settlement, rates for water service will be adjusted to increase annual revenues $703,000 (32%), rather than the increase of approximately $934,236 (41.1%) that was initially sought by Audubon – and those rate changes will be instituted in two phases.

Per today’s PUC order, revenues are permitted to increase by $503,000 during the first year of the settlement, effective no earlier than April 19, 2021 (Phase 1), and then increase an additional $200,000 effective on April 19, 2022 (Phase 2). The increases will be implemented across the board to all rate classes.

Under the terms of the settlement, the bill for the typical residential customer using 4,000 gallons of water per month would increase from $38.84 to $47.73 per month in Phase 1.  During Phase 2 there will be an additional increase of $3.55 per month, with the average bill increasing to $51.28 per month next year.

The settlement also requires Audubon to work with Lower Providence Township and the township’s Fire Marshall to address fire hydrant flow concerns and institute a program to prioritize the replacement of fire hydrants of greatest concern – a public safety initiative that was praised today in a statement from PUC Commissioner Ralph V. Yanora, who noted that this issue will remain the subject of close oversight:

“Fully functional fire hydrants are essential to the provision of safe, reliable, and reasonably continuous public fire service. Additionally, Audubon’s proposed rate tariff explicitly includes ‘Public Fire Protection Rates’ on a per hydrant basis. Given the public safety interests involved in this matter and the Commission’s responsibility to ensure that tariff services are appropriately accounted for, I will separately refer this matter to our Bureau of Technical Utility Services for further monitoring as may be deemed warranted. I will also be closely monitoring the reliability of tariffed fire hydrant service during my tenure at the Commission,” noted Commissioner Yanora.

About the PUC

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

Visit the PUC’s website at www.puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on Twitter, Facebook, LinkedIn, Instagram and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket No.: R-2020-3020919

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov