Press Release

PUC Approves Significantly Lower Than Requested Rate Changes for Aqua PA Water and Wastewater Services

Published on 2/7/2025

Filed under: Water and Wastewater

Settlement Bolsters Customer Assistance and Service, Improves Quality of Service, and Enables New Investments in Critical Infrastructure

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) has approved new base rates for Aqua Pennsylvania Inc. and Aqua Pennsylvania Wastewater Inc.  (collectively, Aqua PA) granting the company substantially smaller than requested rate changes for its water and wastewater services and detailing a series of enhancements to customer service, affordability programs and infrastructure improvements. 

The Commission voted 5-0 to approve a modified Joint Petition for Non-Unanimous Partial Settlement (joint petition or settlement) reducing the company’s request by approximately 42% and allowing for an additional $73 million in overall annual operating revenues, compared to the $126.7 million that had been sought by Aqua PA.

The new revenues approved by the Commission provide for an additional $48 million for water operations and an additional $25 million for wastewater operations, and the parties project the following impact on residential bills:

• The water bill for a residential customer using 3,870 gallons in Rate Zone 1 – Main Division will increase by $9.95, from $80.91 to $90.86 per month, a 12.3% increase, rather than the $16.01 increase (19.8%) as originally proposed by Aqua PA.
  
  
• The wastewater bill for a residential customer using 3,870 gallons per month in Rate Zone 1 – Main Division is projected to increase by $5.36, from $81.18 to $86.54 per month, a 6.6% increase, rather than the $14.92 increase (18.4%) as originally proposed by Aqua PA.

Additionally, the settlement includes the following enhancements to services for Aqua PA customers, including:

• An adjusted monthly customer charge that is lower than initially requested by the company, benefiting lower-usage customers and ensuring that the company is not being overcompensated for the total cost of its services.
  
  
• Customer Assistance Program (CAP) enhancements that revise the company’s CAP levels and discount structure, providing customers with the method by which they can have their arrearages forgiven, and increasing overall customer awareness of CAP benefits – including a dedicated mailing within 60 days that provides eligibility and applications information. Additionally, within 90 days Aqua PA will develop and implement a process to screen all new and move-in customers for income eligibility at the time their service is established.
  
  
• A broadening of the company’s definition of “Confirmed Low-Income Customers” to include other information or indicators that prevent an “undercounting” of confirmed low-income customers and enable Aqua PA to more effectively analyze the effectiveness of its low-income program offerings.
  
  
• An increase in funding for the Hardship Grant Program – with the company contributing $200,000 each year to the hardship program until Aqua PA’s next base rate proceeding.  All unspent funds at the end of each program year will be rolled over and added to the budget for the Hardship Grant program in the following year.
  
  
• Aqua PA’s commitments to improving Call Center Performance – with the company agreeing to conduct and document routine annual audits of its call center performance and enhance training for call center representatives, whether permanent or temporary employees or contractors.
  
  
• A funding increase for Aqua PA’s Leak/Line Repair and Conservation Program – with Aqua increasing its annual funding level from $100,000 to $250,000 and undertaking various reporting and tracking requirements to better equip the program to operate successfully in the future.
  
  
• Development of Aqua PA’s website to provide rate impact information based on the final rates approved by the Commission.  Aqua PA will develop this section on its website and make it “live” within 60 days after the entry of a final order in this proceeding. The website will provide information separately for each water and wastewater rate zone.

The approved settlement resolves all issues raised by the settling parties, exclusive of an issue concerning the company’s proposed increase to customers served from the East Whiteland Township wastewater system, and certain issues raised by SCH USA, LLC (SCH USA) regarding Aqua PA’s method of billing SCH USA for wastewater services. 

The joint petition is signed by Aqua PA, the PUC’s independent Bureau of Investigation and Enforcement (I&E), the Office of Consumer Advocate (OCA), the Office of Small Business Advocate (OSBA), and the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania (CAUSE-PA). The following Parties, while not signatories to the Settlement, have indicated that they do not oppose the Settlement: Aqua Large Users Group; Sandy Township, Treasure Lake Property Owners Association, Inc., Barry Abbott, and Richard Whitaker (Sandy Township et al); and New Wilmington Municipal Authority.

Aqua Water provides water service to approximately 445,000 customers in portions of more than 200 municipalities throughout 32 Pennsylvania counties.  Aqua Wastewater provides wastewater service to approximately 75,000 customers in portions of more than 40 municipalities throughout 16 Pennsylvania counties.

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 puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on X (formerly 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-2024-3047822

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov
• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov