Press Release

PUC Permits $18 Million in Bill Credits for Nearly 690,000 Pennsylvania-American Water Customers

Published on 11/6/2025

Filed under: Water and Wastewater

Action returns proceeds from PFAS litigation directly to consumers – approximately $26 per customer

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today permitted a proposal by Pennsylvania-American Water Company (PAWC) that will enable PAWC to return more than $18 million to approximately 690,000 water customers across the Commonwealth. The refund stems from proceeds PAWC received from legal settlements with manufacturers of perfluoroalkyl and polyfluoroalkyl substances (PFAS)—commonly referred to as “forever chemicals.”

Under the Commission’s order, approved by a 5-0 vote, these proceeds will be distributed as one-time bill credits of about $26 per customer, reflecting net litigation recoveries received by the utility. PAWC is seeking to apply these credits as soon as possible following today’s approval.

“This case underscores the importance of using every tool available to confront the growing costs of PFAS contamination,” said PUC Chairman Steve DeFrank. “By working together, utilities, regulators, and lawmakers can deliver solutions that both protect public health and preserve affordability for Pennsylvania consumers.”

Addressing the Cost of “Forever Chemicals”

PFAS are a group of synthetic chemicals widely used for decades in industrial and consumer products—ranging from firefighting foam to water-resistant coatings. Because they break down slowly in the environment and can accumulate in drinking water sources, PFAS have become a major national and state concern for public health and water quality.

Utilities like PAWC have invested heavily in treatment technologies to detect and remove PFAS from their systems. Today’s Commission action helps offset a portion of those costs, ensuring that settlement proceeds are returned directly to consumers who ultimately pay for water service.

“Pennsylvania families are facing rising costs for many essential needs and service,” noted PUC Commissioner Katie Zerfuss. “I commend PAWC for its thoughtfulness in taking this proactive measure to help its customers.”

Ensuring Transparency and Consumer Benefit

Under the authorized plan, PAWC will distribute the PFAS settlement proceeds through a new PFAS Litigation Universal Credit Rider, which allows the utility to apply one-time bill credits to all active water customers within a short period of receiving settlement funds. The plan also includes detailed reporting requirements to ensure full transparency and accountability for how these funds are applied.

Any small residual balances or rounding differences will be transferred to PAWC’s H2O Help to Others program, supporting hardship grants for customers facing financial challenges.

PUC Continues Advocacy on PFAS Costs

The PUC continues to strongly encourage water and wastewater utilities – and federal policymakers – to work together to address the financial impacts of PFAS and PFOS cleanup, ensuring that utilities can meet public health obligations while safeguarding consumers from the significant costs associated with removing these “forever chemicals” from drinking water and wastewater systems.

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, 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-2025-3057687

Contact:

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