Filing driven by approximately $1.26 billion invested to address
aging water, wastewater infrastructure since last rate case in 2013
Company Website:
http://www.pennsylvaniaamwater.com
HERSHEY, Pa. -- (Business Wire)
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170428005768/en/
Contacts:
Pennsylvania American Water
Eastern/Central Pennsylvania:
Terry
M. Maenza
T: 610-670-7789 ext. 1009
M: 610-849-6484
terry.maenza@amwater.com
or
Western
Pennsylvania:
Gary Lobaugh
T: 724-873-3674
M: 724-944-5148
gary.lobaugh@amwater.com
Source: Pennsylvania American Water
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