Earlier today, PA American Water filed a rate adjustment request with the PA Public Utility Commission that reflects $1 billion in water and wastewater system investments we will be making between 2024 and 2025 to continue providing safe and reliable service to the communities we serve. Any new rates established by the PUC would not go into effect until August 2024, except for certain recently acquired systems where the rate increases are proposed to take effect at later dates.
Request Driven by Investments in System Upgrades
This request reinforces our company’s commitment to investing in our water and wastewater systems to replace aging infrastructure, provide reliable service, enhance water quality, comply with environmental regulations, and increase fire protection for customers. There is tremendous need for significant and costly improvements to the Commonwealth’s water and wastewater infrastructure, and Pennsylvania American Water is playing a key role by making necessary investments and replacing century-old pipes, pumps, and treatment facilities.
Addressing Customer Affordability and Expanding our Assistance Programs
We make these important system upgrades judiciously and with customer affordability in mind, which is why we’re also proposing to make more customers eligible for our bill assistance programs and mitigate increases for wastewater service. To further address affordability, we are proposing to expand our income-based monthly bill discount program to include customers between 151 percent and 200 percent of the Federal Poverty Level (FPL). Our current assistance program offers three tiers of discounts of 30-80 percent off monthly water and wastewater bills for customers with incomes up to 150 percent of the FPL.
Timeline of Review Process
The Commission will spend the next nine months reviewing our request and will offer multiple opportunities for public input. The Commission could grant all, some, or none of our request. Again, any new rates set at the conclusion of this proceeding will not be effective until August 2024.
If approved as requested, the average monthly residential water bill would increase by approximately $17; the average monthly residential wastewater bill for sanitary sewer service would decrease by approximately $5; and the average monthly residential wastewater bill for combined sewer service would increase by approximately $4.
If you would like more details, please visit the Your Water and Wastewater Rates page of our website. You can also reach out to me directly at the number below with any questions or requests for additional information.