Pennsylvania American Water Receives Rate Order from Pennsylvania Public Utility Commission
23 Juillet 2024 - 10:46PM
Business Wire
Reflects $1 billion in system investments to
address aging water and wastewater infrastructure, with expanded
customer assistance programs
The Pennsylvania Public Utility Commission (PUC) issued an order
on July 22 approving adjusted water and wastewater rates for
Pennsylvania American Water customers following the company’s
November 2023 rate request. The order includes expanded customer
assistance programs, a total annualized revenue increase of $99.3
million, 9.45% Return on Equity (ROE) and actual capital structure
with 55.3% equity approved. The order reflects the $1 billion in
infrastructure investments to be made through mid-2025, as
requested by the company, including upgrades to water mains,
treatment plants, tanks, valves, booster stations and other
infrastructure necessary to maintain and improve water quality,
service reliability and fire protection.
“Pennsylvania American Water is committed to making needed
infrastructure improvements across our service areas so we can
continue to comply with more stringent drinking water standards and
environmental regulations while keeping our systems resilient in
the face of floods, droughts and other weather-related risks,” said
Pennsylvania American Water President Justin Ladner. “We appreciate
the Commission’s recognition of these critical investments, and we
will continue to remain focused on efficiencies to help maintain
affordable rates.”
The PUC also approved the company’s proposal to expand its
income-based monthly bill discount program to include customers
between 151 percent and 200 percent of the Federal Poverty Level
(FPL), resulting in an estimated 55,000 additional customers being
eligible to receive discounted service. The order also expanded
eligibility for hardship fund grants from 201 to 250 percent of
FPL.
Underscoring its commitment to affordability, the company’s
current H2O Help to Others Program™ offers three tiers of discounts
off monthly water and wastewater bills for income-eligible
customers, and the PUC’s order expanded the amount of the monthly
discounts from 30-80 percent to 30-90 percent. Last year, customers
received approximately $14 million in bill discounts under this
program. The company is committed to finding other opportunities to
support customers.
The PUC encouraged the company to strive to set a target
donation to its hardship fund of an additional $1 million. As part
of its acquisition of the Butler Area Sewer Authority (BASA), the
company already committed last year to increasing its shareholder
contribution to the H2O Help to Others grant program by $3.5
million over five years. While the BASA acquisition was approved by
the PUC in November 2023, it was appealed to Commonwealth Court,
and the PUC-approved expansion of these assistance programs awaits
a decision.
Additionally, as part of this approval, the PUC initiated an
investigation into reported water service and water quality issues
in the company’s Northeastern service territory, based on testimony
given in public input hearings held as part of the rate request
proceeding.
With 33 of Pennsylvania American Water's water treatment plants
nationally recognized with Directors Awards for participating in
the EPA's Partnership for Safe Water, Pennsylvania American Water
affirms its commitment to high-quality, reliable and affordable
water and wastewater services.
“Our water meets all state and federal drinking water
regulations, and we take customer comments about water quality very
seriously,” stated Ladner. “We acknowledge that some customers
experienced temporary aesthetic disturbances associated with system
improvements and operational maintenance, and we will work with the
Commission on matters raised. As part of this commitment, we
attempted personal outreach to every customer who raised a water
quality concern during the public hearings to better understand and
resolve their issues.”
New rates will take effect on Aug. 7, except wastewater rates
for the recently acquired systems of Foster Township and the City
of York, which will take effect in January and May of 2025,
respectively, in accordance with the acquisition agreements. The
company will communicate new rates and new estimated bill impacts
for its various water and wastewater rate zones on its website and
will include details on how to find this information in upcoming
customer bills.
About American Water
American Water (NYSE: AWK) is the largest regulated water and
wastewater utility company in the United States. With a history
dating back to 1886, We Keep Life Flowing® by providing safe,
clean, reliable and affordable drinking water and wastewater
services to more than 14 million people with regulated operations
in 14 states and on 18 military installations. American Water’s
6,500 talented professionals leverage their significant expertise
and the company’s national size and scale to achieve excellent
outcomes for the benefit of customers, employees, investors and
other stakeholders. For more information, visit amwater.com and
join American Water on LinkedIn, Facebook, X (formally Twitter) and
Instagram.
About Pennsylvania American Water
Pennsylvania American Water, a subsidiary of American Water is
the largest investor-owned water utility in the state, providing
high-quality and reliable water and wastewater services to
approximately 2.3 million people.
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version on businesswire.com: https://www.businesswire.com/news/home/20240723593894/en/
Media: David Misner Senior Manager, External
Communications C: 717-261-7525 david.misner@amwater.com
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