Pennsylvania American Water Files Rate Request
April 28 2017 - 1:23PM
Business Wire
Filing driven by approximately $1.26 billion
invested to address aging water, wastewater infrastructure since
last rate case in 2013
Pennsylvania American Water today filed an application with the
Pennsylvania Public Utility Commission (PUC) requesting an increase
in water rates for its customers. The primary reason for the rate
request is the approximately $1.26 billion that the company will
have invested in system improvements to replace and upgrade aging
infrastructure since its last rate case in 2013.
The company’s request would bring a typical monthly residential
water bill, using 3,630 gallons per month, from $55.63 to $65.12,
or an increase of $9.49.
If the PUC were to grant the entire request, the typical
residential customer would receive a day’s worth of water for
cooking, bathing, cleaning, drinking and all other purposes for
around $2.18. “The quality, reliable water service we deliver to
customers’ homes and businesses would remain a remarkable value,”
said Pennsylvania American Water President Jeffrey McIntyre.
He said the $1.26 billion worth of capital investments, which
include upgrades to treatment plants, storage tanks, wells and
pumping stations, are necessary to enhance service reliability,
water quality and fire protection for the more than 400 communities
served by Pennsylvania American Water. The company will also have
replaced approximately 450 miles of aging pipe, as well as valves,
service lines, hydrants and other parts of its nearly 10,700-mile
network of water and sewer lines.
“This rate request is necessary to help recover the prudent
capital investments that we have made to maintain and upgrade our
infrastructure, so that we can ensure that our customers continue
to receive reliable service that meets all regulatory standards,”
said McIntyre.
According to the latest report card issued by the American
Society of Civil Engineers last month, the nation’s water
infrastructure received a “D” grade and wastewater infrastructure
was rated “D-plus.” McIntyre said proactive capital investment
saves money in the long run by making sure that water and
wastewater systems do not fall into serious disrepair and put
public health at risk.
He added that Pennsylvania American Water’s rates are based on
the actual cost of providing water and wastewater service. “To
mitigate rate increases, we work very hard to control our costs and
operate as efficiently as possible,” he said.
In its application, Pennsylvania American Water also requests
adjustments to wastewater rates for customers who receive its
wastewater service. The company’s filing would increase rates for
some of its 55,000 wastewater customers across the Commonwealth,
while decreasing rates for other wastewater customers.
Specifically, Scranton and Dunmore customers who were previously
served by the Scranton Sewer Authority would see no change in their
wastewater rates under the company’s proposal. Pennsylvania
American Water acquired the assets of the Scranton Sewer Authority
in December 2016.
The company’s filing requests that the new rates become
effective June 27, 2017. However, the PUC typically suspends such
requests for up to nine months (January 2018) to permit a complete
investigation and analysis of the company’s filing. Pennsylvania
American Water is seeking a total annual revenue increase of
approximately $107.9 million.
Pennsylvania American Water, a subsidiary of American Water
(NYSE: AWK), is the largest investor-owned water utility in the
state, providing high-quality and reliable water and/or wastewater
services to approximately 2.3 million people. With a history dating
back to 1886, American Water is the largest and most geographically
diverse U.S. publicly-traded water and wastewater utility company.
The company employs more than 6,800 dedicated professionals who
provide regulated and market-based drinking water, wastewater and
other related services to an estimated 15 million people in 47
states and Ontario, Canada. More information can be found by
visiting www.amwater.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170428005768/en/
Pennsylvania American WaterEastern/Central Pennsylvania:Terry M.
MaenzaT: 610-670-7789 ext. 1009M:
610-849-6484terry.maenza@amwater.comorWestern Pennsylvania:Gary
LobaughT: 724-873-3674M: 724-944-5148gary.lobaugh@amwater.com
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