PUC slashes PA American Water’s rate proposed hike
Pennsylvania American Water Company had requested rate increases totaling over $200 million.
The Pennsylvania Public Utility Commision slashed that request by more than half and requires enhanced customer service and water quality initiatives.
The decision, per the PUC, followed “a lengthy investigation and an extensive series of public input hearings across the state.”
The revised rate changes provide for a revenue increase of approximately $99.3 million per year, compared to PA American Water’s (PAWC) ‘s initial request of nearly $202.4 million – which is a 9.99% increase, compared to PAWC’s proposed 20% increase.
“Today, I believe that the commission struck a balance by approving a significantly lower increase than requested while expanding customer benefits and access to the company’s various consumer assistance programs,” said PUC Chairman Stephen DeFrank. “Additionally, the commission’s action today enables cumulative quality of service issues raised in this proceeding to be properly addressed.”
PA American Water services the city of Warren via wells located off Hemlock Road.
City Manager Mike Holtz said the city has received the complaint from residents that PA American Water can be “difficult to get a hold of” but that it’s not “more or less than other utilities.”
The PUC’s action calls on PAWC “to target the donation of an additional $1 million by shareholders to the utility’s customer Hardship Fund” as well as expand who is eligible.
The agency also said that a “large number of water quality concerns” were raised by customers.
“The investigation will analyze the root cause of the complaints about dirty, discolored or bad smelling water, and make recommendations for future actions by PAWC to correct these issues,” a PUC statement explained.
“Water quality has never been an issue (in Warren),” Holtz said.
The new rates, per the PUC, will be effective August 7.
According to the PUC, 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.