Pa. American rate hike to be smaller than requested

By TAYLOR BROWN

tbrown@yourmvi.com

Pennsylvania American Water customers may not see rate increases as high as they anticipated, thanks to a joint settlement reached with the Pennsylvania Public Utility Commission this week. 

Pennsylvania American Water Company serves approximately 2.3 million people in 37 counties across Pennsylvania.

Locally, the company runs a waste water treatment plant in McKeesport that provides service to approximately 12,000 customers in McKeesport, Duquesne, Dravosburg and Port Vue.

About 10,000 more customers are served under bulk contracts in White Oak, Liberty Borough, East McKeesport, Elizabeth Township, Lincoln Borough, Glassport, Versailles and North Versailles Township.

On Thursday, the Commission voted 4-0 to approve a joint petition for settlement, with some modifications, that will offer substantially smaller rate increases than had been requested by PAWC. It will also offer additional consumer credits during the first two years to further reduce the impact of the rate changes. 

The settlement approved by the PUC will include enhancements to programs for income-qualified consumers and several COVID-19 relief measures.

Under the terms of the settlement, annual water and wastewater revenues for PAWC will increase by $70.5 million — to be phased in over the next two years. 

The original proposal called for an increase of $138.6 million in total annual operating revenues over a two-year, two-step plan.

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