The Pennsylvania Public Utility Commission announced an agreement over the Pennsylvania American Water rate increase had been reached.
The agreement between the company, the PUC Bureau of Investigation and Enforcement, the Office of Consumer Advocate, the Office of Small Business Advocate, and advocates for low-income customers and large industrial customers would include an increase of $138 million in annualized revenue as well as expanded customer assistance funding.
The increase stems from an April 2022 rate request the water company said was necessary because of more than $1 billion in system investments needed to address aging water and wastewater infrastructure. The company had originally asked for a rate increase to $173 million in revenue per year.
Starting Jan. 28, 2023, residential customers will see an average increase of about $9 per month on their water bill, the company said, while wastewater bills will go up about $30. Residents in Royersford Borough, Valley Township, Foster Township, and the City of York will go up at a later date in accordance with their respective acquisition agreements.
“We are pleased the PUC has approved this settlement, which reflects carefully negotiated terms that balance the customer’s interest with the much-needed ongoing investments made by the company,” said Pennsylvania American Water President Justin Ladner. “We also appreciate the diligence of all parties in the case that supported our company’s robust commitments to additional customer assistance funding and more targeted bill discounts to address affordability as it relates to household income.”
Under the terms of the agreement, the company will invest in certain water main extension projects and accelerate its lead service line replacement program, more than doubling the annual replacement rate.
The company will also expand its H20 Help to Others Program, which provides financial assistance to low-income customers who qualify, including emergency grants, bill discounts, and water-saving devices and education. The agreement expands the program to include bill discounts of between 30 and 80 percent for water and wastewater services and increases its annual contribution to the program from $600,000 to $750,000.
“As a company, we believe that the service we provide must be safe, reliable for fire protection, and resilient in the face of floods, droughts, and other weather-related risks,” continued Ladner. “At the same time, it also must be affordable, which is why we are an industry leader in customer assistance programs.”