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Commission halts Pa. American Water increase

A proposed increase by Pennsylvania American Water that would have raised the average water bill nearly 25% has been paused pending an investigation.

The Pennsylvania Public Utilities Commission said that the rate increase, which would have generated nearly $204 million, will be suspended until August “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%),” the Public Utilities Commission said in a statement.

They note that Pennsylvania American Water Company — serving over 675,000 water and nearly 100,000 wastewater customers across 37 counties — is the largest regulated water and wastewater service provider in Pennsylvania.

The action by the Public Utilities Commission “suspends the rate change request for up to seven months and the case will now be assigned to the Public Utilities Commissions Office of Administrative Law Judge for an investigation, the scheduling of hearings and the issuance of a recommended decision.”

Data provided by the Public Utilities Commission shows that the average residential water customer would have seen an increase from $70.65 to $88.24, or 24.9%. Increases in specific “rate zones” varied from 20.1% to 63%.

A final decision is due by Aug. 7.

Starting at $3.50/week.

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