PUC decision puts request for water rate hike on hold
A formal investigation of Pennsylvania American’s request will be conducted, with a final ruling not expected until August.
The Pennsylvania Public Utility Commission on Thursday put the brakes on a sweeping rate hike sought by Pennsylvania American Water, voting unanimously to suspend and investigate the proposal that would raise water and wastewater bills across the state.
In a 5-0 vote, commissioners agreed to pause the company’s request for an additional $168.7 million in annual revenue, an overall jump of about 14.6%. The move triggers a months-long review of the proposal, which affects roughly 682,000 water customers and 97,000 wastewater customers in 37 counties, including many in the Mon Valley.
The suspension pushes any potential increase back by as much as seven months from the company’s planned effective date of Jan. 13, 2026. The case now heads to the PUC’s Office of Administrative Law Judge, where a formal investigation will unfold. That process will include public input hearings, according to the commission.
PA American’s request, filed in November, outlines plans for $1.2 billion in water and wastewater system upgrades statewide through mid 2027. Company representatives have said the investment is needed to replace aging mains, continue removing lead service lines and address contaminants such as PFAs in drinking water. It would also fund wastewater improvements, including the replacement of 32 miles of sewer main.
If approved as originally proposed, the average residential water bill would rise by about $14 per month. Wastewater bills would climb about $10. Customers connected to combined stormwater and wastewater systems would see increases near $20 per month.
PUC documents released Thursday offer a more detailed breakdown of how the hikes would vary widely across service areas. For a typical residential water customer using 3,263 gallons a month, the monthly increase could range from $2.73 to $27.77, depending on location. Wastewater customers using 3,164 gallons a month could see anywhere from no increase to a $26.29 jump. Combined system customers were again estimated to face roughly a $20 bump.
In earlier statements to the Mon Valley Independent, Brent Robinson, PA American’s manager of external affairs, said the company’s infrastructure program includes stormwater separation work designed to reduce backups and limit untreated discharges into the Monongahela River.
He noted that more than 14 miles of main have been upgraded in McKeesport over the past five years and that connecting 43 Dravosburg homes to the system has kept an estimated 6.3 million gallons of untreated wastewater out of the river annually.
The company has argued its rate case “reinforces its commitment” to improving service reliability for the more than 2.4 million Pennsylvanians it serves. It has also proposed a summertime wastewater “deduct adjustment,” which would charge customers based on typical winter usage when outdoor water use is lower.
The broader discussion around rate hikes has intensified since Act 12 of 2016, the state law that allows private utilities to buy municipal water and sewer systems at prices above their book value. Companies can then recover those acquisition costs through customer bills. Consumer advocates and several lawmakers have questioned whether the system tilts too far in favor of private utilities, though legislators have been cautious about weighing in on individual rate cases.
Under the PUC’s timeline, the administrative law judge will review evidence, hear public testimony and issue recommended decisions before commissioners vote next year. A final ruling is expected by Aug. 13, 2026. Regulators could approve the full increase, scale it back or reject it entirely.
Members of the public can submit written comments to: Secretary’s Bureau, Pennsylvania Public Utility Commission, 400 North St., Harrisburg, PA 17120.
