Press Release

PUC Approves Settlement Dramatically Reducing Rate Changes for Conneaut Lake Park Water Corporation

Published on 8/1/2024

Filed under: Water and Wastewater

Settlement Requires Consumer Service and System Improvements and Launches Detailed Investigation to Determine if Another System Operator Should Be Found

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a joint settlement that addresses rates and service issues for the Conneaut Lake Park Water Corporation, which provides water services to 162 full-time and seasonal residences, along with several businesses, in and around Conneaut Lake Park in Summit and Sadsbury Townships, Crawford County.

The Commission voted 5-0 to approve the joint settlement, which dramatically scales back the rate changes initially requested by Conneaut Lake Park Water and includes a list of service and consumer protection improvements which must be made before any rate changes are allowed to be implemented.

Additionally, the settlement sets long-term goals for system improvements and will initiate a detailed PUC investigation – known as a Section 529 proceeding – which will examine the financial, managerial, and technical abilities of the current operator and determine whether the Commission should order another public utility to acquire the Conneaut Lake Park Water system.

“Conneaut Lake Park, and the water system that serves residents and businesses around the park, have a long and complicated history,” noted PUC Chairman Steve DeFrank. “This settlement sets a course for modernizing the system – and sends a clear message to improve the system’s operations – with the goal of ensuring safe and reliable water service to the community.”

Key Settlement Points

The settlement includes a series of customer service improvements which must be made before any rate changes are allowed to occur, including:

• Establishing and publicizing a telephone number, for the water company only, that consumers can call to contact the company about issues.
• Hiring or designating a staff member, other than the company owner, who will be responsible for fielding consumer calls.
• Including the new customer contact number on all customer bills.
• Creating a postcard with the new customer service contact information, to be sent several times within three months of the settlement approval.
• Creating and maintaining a detailed log of customer complaints.
• Providing all customers with the water system’s most recent Consumer Confidence Report, which details water quality testing and other related public information.
• Creating a website or an accessible virtual location where customers can view utility public documents.

The settlement also requires a series of additional steps as the utility moves forward, including:

• Holding at least one public meeting per year, during the summer season, to update residents and businesses about the status of the system and any current or planned improvement projects.
• Conducting additional water testing at numerous points around the system and creating a plan to address any iron or manganese found during the testing.
• Hiring a professional engineer to analyze and evaluate the system and prioritize improvements.
• Locating all customer service lines and water shutoff valves in the system.
• Reading and recording monthly water meter data for all commercial customers and billing them accordingly.
• Ensuring that company procedures for addressing disputes, complaints and terminations comply with PUC regulations.
• Installing meters for all residential customers within 5 years.

Finally, the settlement directs the PUC’s independent Bureau of Investigation and Enforcement to begin proceedings within three months – known as a Section 529 proceeding – that will evaluate the abilities of the current system operator, including the safety, adequacy, efficiency, or reasonableness of the service currently provided.  Ultimately that 529 proceeding will determine whether the Commission should order another capable public utility to acquire the Conneaut Lake Park Water.

Rate Changes

The settlement approved by the Commission today is intended to generate an additional $75,000 in annual revenues, rather than the approximately $258,000 requested by the company, to support company operations and the improvements detailed in the settlement.

The new flat rate for residential customers will be $38.71 per month, rather than the $122.30 per month that was proposed by the company.

The new flat rate for small commercial customers will be $240 per month, rather than the $850 per month the company had initially sought.

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-2023-3041575

Contact:

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