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11/7/2009 3:32 AM

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The state Public Utility Commission on Friday approved a settlement giving Pennsylvania American Water Co. a rate increase of about half the amount it was originally seeking.

The commission approved an annual increase of 6.6 percent that will increase PAW's annual operating revenue by $30.75 million. The water company originally sought a rate increase of 12.5 percent, or $58.06 million. The joint settlement was reached among the company, the state Office of Consumer Advocate and several other groups.

The average monthly bill for a residential customer using 4,200 gallons of water per month will increase by $3.16, from $42.98 to $46.14.

A series of public hearings on the increase were conducted across the state in late July and August, including a hearing in Washington on Aug. 26.

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The company, which last had a rate increase in 2007, said it was seeking the latest increase partly because it is facing power and chemical cost increases. During the hearing in Washington, several residents voiced opposition to the increase request.

The settlement also includes a commitment from the company to install, at its expense, water lines for Skyline Drive, Washington Avenue, Woodland Road, Elm Road and Bowen Road in Mt. Pleasant Township; and a line from Martin Avenue in Avella to service Meadowcroft Museum of Rural Life and another resident in Independence Township.

The company serves about 635,000 customers in Pennsylvania.

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3 comments

Again : 11/7/2009
What are we supposed to do? Change water companies? Why can't these utilities live withing their budgets?

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error in calculation : 11/8/2009
I don't know what settelement agreement you read, but the one I read calls for a rate increase of .1081 cents per hundred gallon. 44 times .1081 cents is 4.54 dollars plus the 1 dollar increase in the meter charge is $5.54 increase for the 4400 gallon user. Who provided the information used in the article?

P H. Suica

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TDS : 11/9/2009
Oh good, now we get to spend more for dissolved solids!

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