Pennsylvania American Water files rate request driven by $1 billion in investment
(UI) — Pennsylvania American Water filed a rate adjustment request on Nov. 8 with the Pennsylvania Public Utility Commission reflecting $1 billion in water and wastewater system investments to be made through mid-2025 to continue providing safe and reliable service.
If the company’s proposed rates are approved as requested, the monthly water bill for the average residential customer would increase by approximately $17 per month, the average monthly residential wastewater bill for sanitary sewer service would decrease by approximately $5 per month, and the average monthly residential wastewater bill for combined sewer service would increase by approximately $4 per month.
Any new rates would not take effect until August 2024 except for certain recently acquired systems, where the rate increases are proposed to take effect at later dates.
“There is tremendous need for significant and costly improvements to the Commonwealth’s water and wastewater infrastructure, and Pennsylvania American Water is playing a key role by making necessary investments and replacing century-old pipes, pumps, and treatment facilities,” said Pennsylvania American Water President Justin Ladner. “We do this judiciously and with customer affordability in mind, which is why we’re also proposing to make more customers eligible for our bill assistance programs and mitigate increases for wastewater service.”
As part of its commitment to affordability, the company is proposing to expand its income-based monthly bill discount program to include customers between 150% and 200% of the Federal Poverty Level (FPL), resulting in an estimated 55,000 additional customers being eligible to receive discounted service. The company’s current assistance program offers three tiers of discounts of 30-80 percent off monthly water and wastewater bills for customers with incomes up to 150% of the FPL.
A detailed affordability analysis of the company’s water and wastewater services as a comparison of monthly bills to monthly household income demonstrates that customer bills currently are and will remain affordable under the company’s proposed rates for the majority of customers.
The PUC’s rate review process offers multiple opportunities for customer involvement. Customers can participate through written comments, attendance at public input hearings, and consumer advocacy organizations that participate in the proceedings.
The request reinforces the company’s commitment to investing in its water and wastewater systems to replace aging infrastructure, provide reliable service, enhance water quality, comply with environmental regulations, and increase fire protection for customers.
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