HARRISBURG — On Thursday, the Pennsylvania Public Utility Commission suspended rate increase requests for water and wastewater services proposed by the Pennsylvania American Water Co. to allow for a detailed investigation and analysis.
The increases would impact residents of Kane. The proposal would mean monthly water bills would increase by about $17 or 24.9%, and wastewater bills would increase by about $4, said Gary Lobaugh, spokesman for the water company, last month.
The PUC voted unanimously to suspend the proposed increases for as long as seven months. The case will now be assigned to the PUC’s Office of Administrative Law Judge for an investigation, the scheduling of hearings and the issuance of a recommended decision.
A final decision by the PUC on the rate increase request is due by Aug. 7.
Lobaugh explained improvements are needed in the system.
“On Nov. 8, 2023, Pennsylvania American Water filed a rate adjustment request with the PUC reflecting $1 billion in water and wastewater system investments to be made through mid-2025 to continue providing safe and reliable service, which includes $8 million in water and wastewater system upgrades in Kane,” he said.
“Pennsylvania American Water will continue to upgrade our Kane area water and wastewater treatment plants,” Lobaugh said. “The company will also invest in our water and sewer mains and a lift station in our wastewater system.
“These upgrades ensure high-quality drinking water and reduce excess water from entering the sewer collection system and community and local watershed.”
The rate proposal was submitted Nov. 8. On Nov. 17, the Office of the Consumer Advocate filed a rate complaint, saying this request came “a mere nine months after its last rate increase of $138 million went into effect.”
The advocate’s office continued, “PAWC’s customers are paying some of the highest water and wastewater bills in the commonwealth as a result of the frequent and snowballing rate increase requests filed by PAWC over the last several years, as well as the policy choices the company has made in its equity requests, capital structures, and its pattern of recent high-cost municipal acquisitions.”
The Office of the Small Business Advocate filed a similar complaint.
Multiple complaints against the rate proposal, and several motions from agencies to intervene in the case before the PUC, were listed on the docket as well.
According to a spokesman for the PUC, the existing rates will continue until the commission issues a final ruling in the matter.