Pennsylvania American Water Files Request with PUC to Replace Lead Service Lines
May 22 2017 - 1:44PM
Business Wire
Company proposes long-term solution to address
potential health risk from lead lines
Pennsylvania American Water today filed a request with the
Pennsylvania Public Utility Commission (PUC) seeking permission to
replace customer-owned lead service lines when removing
company-owned lead service lines – and to bear the full cost of
replacement. Pennsylvania American Water’s proposal allots $6
million annually to replace the company’s and customers’ lead
service lines.
“With this filing, we are taking an important first step toward
a long-term solution to eliminate lead service lines that exist
within our communities’ water infrastructure,” said Pennsylvania
American Water President Jeffrey McIntyre. “Lead service lines
largely remain in older neighborhoods where the prohibitive costs
often prevent homeowners from replacing them. We are asking for PUC
approval to address this public health risk, and we have proposed a
reasonable approach to recover the cost of our investments.”
McIntyre stressed that Pennsylvania American Water has a long
history of complying with federal and state drinking water
regulations for lead. For the last 30 years, the company’s lead
sampling program has remained in compliance across its water
systems. He credited this record of performance to the company’s
effective corrosion control measures and ongoing, professional
management of its distribution system.
“We believe that eliminating lead service pipes, together with
our proven corrosion control water treatment practices, is a very
effective strategy to maintain regulatory compliance well into the
future,” said McIntyre.
Preliminary surveys of the company’s distribution system
inventory indicate an estimated 18,000 customer premises are
connected to lead service lines. These properties comprise less
than 3 percent of the total number of customers who receive water
service from Pennsylvania American Water. In its PUC filing, the
company requests investing up to $6 million annually through a
two-part program:
- Proactively remove and replace, with
the customer’s consent, any lead service lines that are encountered
when the company is replacing water mains and company-side service
lines; and
- At the customer’s request, remove and
replace lead service lines, subject to the customer verifying that
his/her property has a lead service line. Under this proposal, the
company will coordinate customer-requested replacements and group
the requests by geographic location. Lead line replacements will
take place when the number of requests in a given location enables
the company to realize reasonable economies of scale by completing
the work as a single project.
Although Pennsylvania American Water proposes to replace
customer-owned lead service lines, its filing states the company
will not take ownership or be responsible for maintaining or
repairing the customer’s service line in the future.
Each year, Pennsylvania American Water targets the replacement
of 1 percent of the aging water main in its approximately
10,000-mile network of pipe. The company identifies specific areas
for its ongoing water main and service line replacement program
based on a variety of factors, including water quality concerns,
pipe age, material and history of breaks. McIntyre said the
opportunity to eliminate its remaining lead service lines is
another factor when planning water main and service line
replacement projects.
“A growing body of research indicates that ‘partial’ replacement
of lead services, where only the utility-owned or customer-owned
portion is replaced and the other segment remains, actually
elevates the risk of lead contamination,” said McIntyre. He cited
the National Drinking Water Advisory Council’s recommendation that
the EPA revise federal regulations to require complete replacement
of both the utility and customer segments of service connections
that contain lead.
Pennsylvania American Water also seeks permission from the PUC
to recover its investment through the existing mechanism known as
the Distribution System Improvement Charge (DSIC). If the PUC
authorizes it to recover lead service line replacements through the
DSIC, the company estimates it will have a negligible effect on its
customers’ water bills -- approximately 11 cents per month.
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/20170522006151/en/
Pennsylvania American WaterTerry MaenzaT: 610-670-7789 ext.
1009M: 610-849-6484terry.maenza@amwater.comorGary LobaughT:
724-873-3674M: 724-944-5148gary.lobaugh@amwater.com
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