MECHANICSBURG, PA — The Pennsylvania Public Utility Commission (PUC) has approved new water and wastewater rates for Pennsylvania American Water customers, effective Aug. 7. This decision follows a rate request submitted by the company in November 2023 and includes expanded customer assistance programs.
The order authorizes a total annualized revenue increase of $99.3 million and a 9.45% Return on Equity (ROE). It also approves the company’s capital structure with 55.3% equity. This adjustment reflects the company’s plans to invest $1 billion in infrastructure upgrades by mid-2025. These improvements will cover water mains, treatment plants, tanks, valves, and other essential infrastructure to enhance water quality and service reliability.
“Pennsylvania American Water is committed to making needed infrastructure improvements across our service areas,” said Justin Ladner, President of Pennsylvania American Water. “We appreciate the Commission’s recognition of these critical investments and will continue to focus on maintaining affordable rates.”
The PUC has also expanded the company’s income-based bill discount program, now including customers between 151% and 200% of the Federal Poverty Level (FPL). This change is expected to benefit an additional 55,000 customers. Furthermore, eligibility for hardship fund grants has been extended to those between 201% and 250% of FPL.
The company’s H2O Help to Others Program™ currently offers three tiers of discounts on monthly bills for income-eligible customers. The new order increases these discounts from 30-80% to 30-90%. Last year, the program provided approximately $14 million in bill discounts.
As part of the PUC’s directive, Pennsylvania American Water is encouraged to aim for an additional $1 million in donations to its hardship fund. The company had already committed to increasing its contribution to this fund by $3.5 million over five years as part of its acquisition of the Butler Area Sewer Authority (BASA). While this acquisition was approved in November 2023, it is currently under appeal, and the expansion of assistance programs awaits a court decision.
The PUC has also initiated an investigation into water service and quality issues in the company’s Northeastern service territory. This decision follows public testimony during the rate request proceedings.
Pennsylvania American Water operates 33 treatment plants recognized with Directors Awards by the EPA’s Partnership for Safe Water. The company remains dedicated to providing high-quality, reliable, and affordable services.
“Our water meets all state and federal drinking water regulations,” stated Ladner. “We take customer comments about water quality seriously and will work with the Commission to address any issues raised.”
While the new rates take effect on Aug. 7, wastewater rates for the recently acquired systems in Foster Township and the City of York will begin in January and May of 2025, respectively. Customers will be notified of the new rates and estimated bill impacts via the company’s website and upcoming bills.
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