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HARRISBURG — The Pennsylvania Public Utility Commission voted to suspend and investigate rate increases requested by Pennsylvania American Water Co. for its water and sewer services.
The PUC Thursday, by a 4-0 vote, agreed to look into the hikes that would have raised revenues for the company by a combined $138.6 million over a two-year period.
The PUC routinely reviews rate requests. In a press release, the PUC said PAWC’s requests will be suspended for up to seven months from the time the rates would go into effect next year. The case will be assigned to the Office of Administrative Law Judge who will schedule proceedings and issue a recommendation. The PUC will issue its decision by Jan. 28, 2021.
In its filings last month, PAWC estimated revenues of $80.1 million for the higher rate effective in 2021 and $41.7 in 2022 for its water service, including customers in Northeastern Pennsylvania. The requested sewer rate hike would bring in an estimated $12.3 million in 2021 and $4.5 million in 2022.
PAWC said the pending hikes were unrelated to the coronavirus pandemic. The company said it made $1.64 billion in improvements to its infrastructure since 2018 when the last rate hike was approved.
Water and sewer services would increase by an estimated $340 on average for customers over the two-year period customers if the full hike was granted, the company said.
The monthly bill for the average customer using 3,458 gallons of water a month would increase to $65.91 from $57.85 in 2021 and to $69.73 in 2022, the PAWC said.
For sewer service customers the average monthly bill would increase to $71.97 from $60.42 in 2021 and to $76.85 in 2022, the company said.
PAWC provides water and sewer services to approximately 2.3 million people in 37 counties.