Water authority increasing rates
Southwestern Pennsylvania Water Authority voted last week to increase rates, citing decline in the coal and natural gas industries and corresponding reduction in water use.
The rate increase, approved by the board Thursday and set to take effect for the September billing cycle, will increase the bill for the average residential customer who uses 3,000 gallons a month by $6.92, to $29.25.
“Due to the current state of the coal industry and the sudden reduction in water required for fracking by the oil and gas industries, the water authority’s revenue has been reduced,” authority manager Jack Golding said.
Water sales to energy-related industries helped subsidize rates to residential and light commercial customers for years, Golding said. While sales to natural gas customers are expected to return, sales to coal industry customers are not, he said.
Authority customers benefited from one of the lowest water rates in the region for years, Golding said. Over the years, however, the authority experienced increased expenses associated with employee costs and the expansion of its water treatment plant and other system improvements, he said. As a result, the authority board agreed to raise rates for residential, commercial and industrial customers, he said.
The authority’s regular monthly bills include a base charge and a water usage rate. The base rate for residential customers will increase from $10 to $15. Industrial and commercial customers will see the same percentage increase in their base charge as residential customers, Golding said.
The water usage rate for residential, commercial and industrial customers will increase from $4.11 to $4.75 for each 1,000 gallons of water a customer uses.
The water usage rate for other users, such as water haulers, those who purchase water in bulk and the oil and natural gas industry, was increased several years ago to $5 for each 1,000 gallons used and will remain unchanged.
The authority serves about 13,500 customers in Greene, Fayette and Washington counties.