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Rate Increases for Water and Wastewater Services Proposed by Pennsylvania American Water Suspended for PUC Investigation

December 23, 2023

HARRISBURG – The Pennsylvania Public Utility Commission suspended rate increase requests for water and wastewater services proposed by the Pennsylvania American Water Company to allow for a detailed investigation and analysis.

The Commission voted 5-0 to suspend the proposed rate increases, which would increase the company’s total annual operating revenues for water services by approximately $199.2 million (24.2%) and increase total annual operating revenues for wastewater services by approximately $4.7 million (2.5%).

PAWC serves 681,707 water and 97,585 wastewater customers in 37 counties and is the largest regulated water and wastewater service provider in Pennsylvania.

The Commission’s action suspends the rate change request for up to seven months and the case will now be assigned to the PUC’s Office of Administrative Law Judge for an investigation, the scheduling of hearings, and the issuance of a recommended decision.

A final decision by the PUC on the rate increase request is due by Aug. 7, 2024. More information on the ratemaking process is available on the PUC’s website.

PAWC Rate Increase Request

Under the proposals filed with the PUC by PAWC, the average monthly bills for a residential water customer in Rate Zone 1, based on 3,201 gallons of metered usage per month, would increase from $70.65 to $88.24 (24.9%). Changes to average monthly water bills in other PAWC rate zones vary from a 63% increase (approximately $34 per month) to a 20.1% increase ($8.93 per month).

For PAWC wastewater customers, the average monthly bill for a residential customer in Rate Zone 1, based on 3,122 gallons of metered usage per month, would fall from $105.18 to $100.08 (-4.8%). Changes to the average monthly wastewater bills in other PAWC rate zones vary from a 121.3% increase (nearly $35 per month) to a 4.8% decrease (nearly $5 per month).

Docket Nos.:
R-2023-3043189
R-2023-3043190

      

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