If you’re a Pennsylvania American Water customer, your water bill should get smaller.
The company is saving $47 million annually due to last year’s federal tax cuts, and that savings will be passed along to the customers.
Beginning with July’s water bills, customers will see a 6.8 percent monthly discount on water rates and a 7.7 percent discount on wastewater rates. The discount will be labeled “Fed Tax Cuts Surcharge” on customer bills.
For the average water customer, the savings will amount to between $3-$6 per month for water and another $4-$7 for wastewater.
“The reduced tax expense amounts to approximately $47 million annually for our company,” President Jeffrey L. McIntyre of Pennsylvania American Water said in a statement. “So we are following the PUC’s directive and passing the savings to our customers.”
On May 17, 2018, the Pennsylvania Public Utility Commission (PUC) issued an order directing 17 electric, natural gas, and water and wastewater utilities, including Pennsylvania American Water, to implement a “negative surcharge” or monthly credit on customer bills. The PUC’s order cited decreased federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act of 2017, which impacted the tax liability of many utilities. The PUC projected the savings for the utilities’ customers at more than $320 million per year.
- Water: Nearly 6.8 percent decrease for most customers. For example, a water customer who typically uses 3,000 gallons per month will see $3.61 savings, or $43.32 per year. For water customers who typically use 5,000 gallons per month, the savings will be $5.27, or $63.24 per year.
- Wastewater: Nearly 7.7 percent decrease for most customers. For example, a wastewater customer who typically uses 3,000 gallons per month will see $4.25 savings, or $51 per year. For wastewater customers who typically use 5,000 gallons per month, the savings will be $6.58, or $78.96 per year. (Reductions for Scranton and Dunmore wastewater customers and New Cumberland wastewater customers are slightly less due to the lower rates established in the company’s most recent rate filing last year.)