PUC Hearings, Explosions, and Rate Battles Mark a Tumultuous January for Utilities

Pennsylvania Public Utility Commission

HARRISBURG, PA — Pennsylvania utility regulators are confronting a turbulent start to the year, as proposed water rate hikes, lingering safety failures, and sharply contested settlement agreements collide across the Commonwealth.

The Pennsylvania Public Utility Commission this month launched a sweeping series of public input hearings tied to a proposed $168.7 million rate increase sought by Pennsylvania American Water Co., one of the largest water and wastewater providers in the state. The request, which would raise overall revenues by about 14.6 percent, has been suspended and placed under formal investigation after a unanimous 5-0 vote by the commission in December.

The proposed increases could hit customers unevenly, depending on location. Residential water customers using about 3,263 gallons a month could see increases ranging from $2.73 to $27.77 per month, while wastewater customers could face monthly hikes of up to $26.29. Customers with combined stormwater and wastewater service could see bills rise by roughly $20 a month.

To gather public reaction, the commission scheduled a dozen hearings in January, including ten in-person sessions and two telephonic hearings. A key change affects Chester County residents, where hearings originally planned for New Garden Township were moved to Coatesville City Hall on January 29, with sessions at 1 p.m. and 6 p.m.

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The final decision on Pennsylvania American Water’s request is due by August 13, 2026.

At the same time, the commission is pressing ahead with oversight of smaller, troubled systems. In Crawford County, regulators will hear directly from customers of Conneaut Lake Park Water Corp., a system serving just over 160 residences and businesses. The hearings come as part of a broader investigation into whether the utility is financially, managerially, and technically capable of continuing to operate, or whether another provider should take over.

Safety concerns also dominated commission action this month. On January 15, the PUC approved a settlement resolving an enforcement case tied to a December 2022 natural gas explosion and fire in Harrisburg that destroyed a home, damaged neighboring properties, and injured two people. Investigators determined that excavation work by Pronto Plumbing & Drain Inc. struck a gas service line, allowing gas to accumulate and ignite.

Under the settlement, the company will pay a $35,000 penalty, undergo additional safety training, revise internal policies, and file annual compliance reports for three years. Separate enforcement actions involving the gas utility that operated the damaged line remain pending.

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Meanwhile, regulators approved a series of rate settlements affecting electric and gas customers in north-central Pennsylvania, trimming back company requests while still allowing higher revenues to take effect.

Wellsboro Electric Co. received approval for a two-phase increase totaling about $2.5 million, less than originally requested. After full implementation in 2027, a typical residential customer’s total bill will rise about 18.1 percent. Valley Energy Inc. won approval for a reduced gas rate increase of roughly 12 percent, while Citizens’ Electric Co. of Lewisburg secured a smaller electric rate hike than initially sought, lowering the projected impact on residential bills from double digits to about 6.8 percent.

Across all of these proceedings, the commission emphasized that public testimony becomes part of the official record and can influence final decisions. Consumers unable to attend hearings are encouraged to submit formal complaints or written comments through the commission’s website at https://www.puc.pa.gov/complaints/formal-complaints/.

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As January unfolds, the commission’s docket reflects the pressures facing Pennsylvania’s utility landscape: rising costs, aging infrastructure, public safety risks, and a growing insistence from regulators and consumers alike that accountability come before higher bills.

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