The Pennsylvania Public Utility Commission has ruled on the rate hike requested by PA American Water last year.
By a 4 to 1 vote, the Commission approved a motion to reduce the proposed increase to water and wastewater service by over 50% as well as enhance customer assistance programs. The PUC also launched an investigation into service quality issues raised at public input hearings.
PA American Water sent letters to customers last November informing them of the proposed 20% hike to their monthly bills. For example, a homeowner paying about $70 per month would have seen their bill increase to just over $88.
The revised rate change still provides PA American Water with a revenue increase of nearly $100 million per year which is about 10% of total revenue. Officials say the rate increase is needed to pay for infrastructure upgrades planned for the future.
PA American Water will expand income eligibility guidelines for the Hardship Fund grant program as well as increase discounts for the H2O bill discount program to address affordability concerns for income-qualified customers.
Finally, the PUC rejected the request by PA American Water for rate recovery related to several municipal authorities including the Butler Area Sewer Authority. The new rates will be effective for service rendered on or after August 7th.
