Press Release

PUC to Investigate Proposed Rate Increase for Pennsylvania American Water

Published on 6/18/2009

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted to investigate a proposed $58,062,930 (12.5 percent) annual rate increase for Pennsylvania American Water Co.

The Commission voted  5-0 to investigate the proposed increase.  It is suspended for up to seven months until January 23, 2010, and will be assigned to the Office of Administrative Law Judge for public hearings and a recommended decision or settlement.  More information on the ratemaking process is available on the Commission’s website.

Under the company’s proposal, the average yearly bill based on annual usage of 50,400 gallons for residential customers would change as follows:

• $515.76 to $586.80 (13.8 percent) in Main Division;
• $452.04 to $586.80 (29.8 percent) for old Acquisitions;
• $406.80 to $586.80 (44.2 percent in Rustic Acres;
• $403.20 to $586.80 (45.5 percent) in Lehman Pike and Winona Lakes;
• $458.40 to $586.80 (28.0 percent) in Blue Mountain Lake;
• $414.60 to $586.60 (41.5 percent) in Pine Ridge;
• $275.52 to $432.84 (57.1 percent) in Pocono Farms;
• $453.00 to $586.80 (29.5 percent) in Redstone;
• $452.04 to $487.20 (7.8 percent) for new Acquisitions; and
• $600 to $586.80 (-2.2 percent) in Mountaintop. 

The company provides water service to approximately 635,000 customers in portions of Adams, Allegheny, Armstrong, Beaver, Berks, Bucks, Butler, Center, Chester, Clarion, Clearfield, Columbia, Cumberland, Dauphin, Fayette, Indiana, Jefferson, Lackawanna, Lancaster, Lawrence, Lebanon, Luzerne, McKean, Monroe, Montgomery, Northampton, Northumberland, Pike, Schuylkill, Susquehanna, Union, Washington, Warren, Wayne, and York counties.

According to the company’s filing, the proposed increase is necessary to obtain additional funds needed for the company’s substantial investment in new utility plants and for the increase in production costs and post employment benefits.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.state.pa.us.

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            Docket No. R-2009-2097323

Contact:

• Press Secretary
  717-787-5722