PENNSYLVANIA — Residents across the Commonwealth could soon see their monthly utility costs climb, as Pennsylvania American Water has officially filed a request for a rate increase with the Pennsylvania Public Utility Commission (PUC).
According to reports released Tuesday, November 18, the utility company is seeking approval to adjust rates to cover substantial infrastructure projects. If the PUC approves the request in full, the impact on the average residential customer would be noticeable.
The Cost Breakdown
Under the proposed plan, customers would see increases in both their water and wastewater services:
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Water Bill: The typical residential customer would see an increase of approximately $14 per month.
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Wastewater Bill: For those with wastewater service through the provider, the bill would increase by about $10 per month.
The Reason for the Hike
In its filing, Pennsylvania American Water stated that the additional revenue is necessary to support a massive capital investment plan. The company says the higher rates would fund over $1 billion in investments aimed at upgrading the water and wastewater service systems through 2027.
Typically, these types of investments cover the replacement of aging pipelines, upgrades to water treatment plants to meet environmental regulations, and improvements to pumping stations to ensure reliability.
What Happens Next?
The filing is just the first step in a regulatory process. The Pennsylvania Public Utility Commission must review the request to determine if the rate hike is "just and reasonable." This process often involves public hearings and investigations, meaning the final approved rate could differ from what the company has initially requested.
Customers should keep an eye on their mail for official notices regarding the filing and opportunities to provide public comment before any changes take effect.
