HARRISBURG, PA — The Pennsylvania Public Utility Commission (PUC) has approved revised base rates for Aqua Pennsylvania Inc. and Aqua Pennsylvania Wastewater Inc. that grant the company substantially less revenue than originally requested while securing critical enhancements to customer service, affordability programs, and infrastructure development.
The PUC’s unanimous 5-0 decision allows Aqua PA to raise overall annual operating revenues by $73 million, a 42% reduction from the company’s initial request of $126.7 million. The decision outlines increases of $48 million for water operations and $25 million for wastewater services. For consumers, this means more modest bill hikes than those initially proposed, coupled with new efforts to improve affordability and service quality.
Projected Customer Impact
The revised rate adjustments will result in the following changes for residential customers in Rate Zone 1 – Main Division:
- Water Bills: Monthly costs for average usage of 3,870 gallons will rise by $9.95, from $80.91 to $90.86, reflecting a 12.3% increase. This is well below the 19.8% hike Aqua PA had sought.
- Wastewater Bills: Monthly costs for the same level of usage will increase by $5.36, from $81.18 to $86.54, representing a 6.6% increase, compared to the originally proposed 18.4%.
Key Service and Program Enhancements
The settlement includes an array of measures designed to improve customer affordability, assistance, and service:
- Affordability Programs: Adjustments to Aqua PA’s Customer Assistance Program (CAP) include refined discount structures, enhanced outreach, and a new process screening incoming customers for income eligibility. Aqua PA will also increase funding for its Hardship Grant Program by committing $200,000 annually until the next base rate case, with unspent funds rolling over into future program years.
- Support for Low-Income Customers: Revisions broaden the definition of “Confirmed Low-Income Customers” to ensure better service eligibility and more accurate analyses of program effectiveness.
- Call Center Improvements: Aqua PA will conduct regular audits and improve training for its call center representatives, ensuring higher service standards for customer inquiries.
- Leak Repair Funding: The utility is expanding its Leak/Line Repair and Conservation Program by boosting annual funding from $100,000 to $250,000 and implementing better reporting and tracking systems.
- Rate Transparency: Aqua PA will create a new section on its website dedicated to detailing rate impact information tailored to water and wastewater rate zones. This resource will be available within 60 days of the approved rate order.
Infrastructure Investments
The approved rates will allow Aqua PA to continue updating and maintaining large portions of its service infrastructure. The company provides water services to approximately 445,000 customers across more than 200 municipalities in 32 Pennsylvania counties and wastewater services to approximately 75,000 customers in 16 counties. These investments aim to preserve service reliability while adapting to evolving operational demands.
Broader Settlement Agreements
The approved settlement resolves almost all issues raised by stakeholders, excluding specific billing disputes impacting customers in the East Whiteland Township wastewater system. Parties involved in the settlement negotiations include Aqua PA, the PUC’s Bureau of Investigation and Enforcement, the Office of Consumer Advocate (OCA), the Office of Small Business Advocate (OSBA), and the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania (CAUSE-PA).
Forward Looking
The PUC’s decision to balance customer affordability with essential operational and infrastructure funding exemplifies its efforts to protect both Pennsylvania residents and the long-term viability of the utility. With enhanced programs to support low-income households, improved customer services, and substantial investments in infrastructure maintenance, Aqua PA is positioned to address the needs of its customers effectively.
As the utility implements these rate adjustments and program improvements, families, businesses, and communities served by Aqua PA can expect a more robust and customer-focused operation in the years ahead.
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