Settlement Unanimously Approved in Pennsylvania American Water Rate Request
February 25 2021 - 2:24PM
Business Wire
Request driven by $1.64 billion invested to
address aging water and wastewater infrastructure; Includes
additional consumer protections and enhanced customer assistance
programs
The Pennsylvania Public Utility Commission (PUC) today
unanimously approved a settlement agreement that was previously
filed between the company and the PUC Bureau of Investigation and
Enforcement. This allows Pennsylvania American Water to raise its
water and wastewater rates over a two-year period to reflect the
continued investment made by the company to provide reliable,
quality service. The company’s rate request was driven by $1.64
billion of investment from 2019 through 2022 to replace and upgrade
aging infrastructure.
“We are pleased the Commission has approved this settlement,
which reflects carefully negotiated terms that balance the
customer’s interest with the much-needed ongoing investments made
by the company,” said Pennsylvania American Water President Mike
Doran. “We also appreciate the diligence of all parties in the case
that supported our company’s robust commitments to additional
consumer protections and customer hardship assistance in light of
the economic challenges presented by COVID-19.”
Through its H2O Help to Others Program™, the company already
provides financial assistance to low-income customers who qualify,
including emergency grants, bill discounts and water-saving devices
and education. The agreement approved today includes enhancements
to the company’s COVID-19 customer relief measures and low-income
assistance programs, including waiving reconnection fees for
customers at or below 200 percent of Federal Poverty Levels (FPL)
for one year, waiving good faith payment requirements for H2O Help
to Others grant eligibility for one year, and allowing
self-certification of income for H2O Help to Others grants until
Governor Wolf’s COVID-19 emergency disaster declaration is
rescinded. The company will also increase its annual contribution
to the H2O Help to Others grant program from $450,000 to $600,000
and will expand its discount program for customers at or below 150
percent of FPL to include an additional 10 percent off the
volumetric charges on their water bill and 30 percent off their
total wastewater bill.
“Pennsylvania American Water is steadfastly committed to
addressing the needs of our most vulnerable customers and being
responsive to the current environment caused by the pandemic,”
Doran continued. “At the same time, we remain focused on meeting
the current and future needs of our customers through sound
infrastructure and public health protection by making prudent,
ongoing investments to maintain and upgrade water and wastewater
systems.”
Effective Jan. 28, 2021, the monthly water bill for the average
residential customer using 3,458 gallons per month will increase
from the current charge of $57.85 to $61.92, and the average
monthly residential wastewater bill will increase from $60.42 to
$67.94. At the second phase-in on Jan. 1, 2022, the average monthly
residential bills will increase to $62.80 for water and $78.41 for
wastewater. These increases will be offset slightly in 2021 and
2022, reflecting tax savings that the company is flowing back to
customers.
Doran concluded that the company’s ongoing investments also
support the economic health of the community during a time when
local economies are challenged, as economic impact studies show
that for every $1 million invested in water infrastructure, more
than 15 total jobs are generated throughout the economy. The
company recently announced that it delivered on its $400 million
capital investment plan in 2020 despite the COVID-19 public health
emergency. This level of investment supported 4,400 jobs in 2020
and will support more than 3,700 jobs in 2021 and 2022.
Today’s PUC approval will result in a two-year total revenue
increase of $70.5 million, which will be offset by annualized tax
savings credits of $10.5 million in 2021 and 2022. The company
filed its original rate request with the PUC in April 2020, seeking
annual revenue increases totaling $138.6 million over two
years.
About Pennsylvania American Water
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 2.4 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 7,000 dedicated professionals who
provide regulated and market-based drinking water, wastewater and
other related services to an estimated 15 million people in 46
states. American Water provides safe, clean, affordable and
reliable water services to our customers to help make sure we keep
their lives flowing. For more information, visit amwater.com and
follow American Water on Twitter, Facebook and LinkedIn.
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version on businesswire.com: https://www.businesswire.com/news/home/20210225006065/en/
Northeast PA: Susan Turcmanovich,
External Affairs Manager C: 570-332-6726 E:
susan.turcmanovich@amwater.com
Southeast/Central PA: Maggie
Sheely, External Affairs Manager C: 717-317-3762 E:
maggie.sheely@amwater.com
Western PA: Gary Lobaugh, External
Affairs Manager C: 724-873-3674 E: gary.lobaugh@amwater.com
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