PUC to probe water rate hike request

Process may include hearings, public comment

HARRISBURG » The Pennsylvania Public Utility Commission voted Thursday to investigate proposed water and wastewater rate increases by Aqua Pennsylvania Inc. and Aqua Pennsylvania Wastewater Inc.

The commission voted unanimously to investigate the request.

The decision means that Aqua Pennsylvania’s revenue and rate increase requests are suspended for up to seven months from the time the rate would have otherwise become effective.

The company’s requested effective date was Oct. 16, 2018. A final decision by the Public Utility Commission is due by May 16, 2019.

Aqua Pennsylvania filed a request with the Public Utility Commission Aug. 17 to increase its annual operating revenues for water services by approximately $66.373 million — an increase of 15.4 percent. The company also filed to seek a corresponding increase in its annual operating revenues for wastewater services by $5.369 million — 40.1 percent.

The total annual revenue increase request amounts to approximately $71.8 million.

As a result of Thursday’s order by the Public Utility Commission, the rate case will be assigned to the Office of Administrative Law Judge for evidentiary hearings and the issuance of recommended decisions or settlements.

No schedule or locations for the hearings has been established.

The investigation is “instituted to determine the lawfulness, justness, and reasonableness of the rates, rules, and regulations contained in Aqua Pennsylvania, Inc.’s proposed Tariff,” the order stated.

If hearings are scheduled before an Administrative Law Judge, evidence in support of the rate increase will be examined and testimony offered. The hearings also present an opportunity for consumers to voice their opinions.

Following completion of the hearing process, a recommendation by the Administrative Law Judge will then be made to the Public Utility Commission for a vote and final decision by the commissioners.

After examining the evidence, the commission may approve all, none, or a portion of the request.

“Aqua Pennsylvania respects

the thorough process the PUC is moving through as part of our efforts to recover the investments we have made for customers throughout the state over the last seven years. We look forward to their final decision once their investigation has concluded,” company spokeswoman Stacey Hajdak said on Friday.

If approved as filed, the average monthly bill for a residential Main Division water customer using 4,080 gallons per month would increase by $9.22 per month, from $59.85 to $69.07. The average monthly bill for a residential Media Division wastewater customer using 4,200 gallons per month would increase $20.73 from $42.19 to $62.92.

As part of its original filing, Aqua Pennsylvania said the primary reason for the request is to recover $2.2 billion the company has invested in infrastructure, including upgrades to its distribution and treatment systems to improve drinking water quality and service reliability throughout its water and wastewater operations.

Included in the $2.2 billion investment, according to the company, is the upgrade and rehabilitation of treatment plants, pumping stations, water storage tanks and wells, including the installation of equipment to further ensure sustained disinfection throughout the distribution system as required by Pennsylvania’s new, more stringent environmental requirements.

Wastewater operations improvements, the company said, have included collection system replacement and renewal, treatment plant rehabilitation, upgrades to electrical systems and the purchase and installation of generators.

The order issued Thursday by the Public Utility Commission, stated that on Aug. 28, the Office of Consumer Advocate filed a formal complaint in opposition to Aqua Pennsylva- nia’s request. In addition, various individuals filed formal complaints, the order continued.

Aqua Pennsylvania has about 450,000 water and wastewater customers throughout Pennsylvania, serving about 1.4 million people in 200 municipalities across 32 counties.

Across the region, the company has:

• Berks County — 1,797 water customers;

• Chester County — 70,413 water and 3,336 wastewater customers;

• Delaware County — 149,379 water and 6,770 wastewater customers;

• Montgomery County — 107,335 water and 233 wastewater customers.

Following completion of the hearing process, a recommendation by the Administrative Law Judge will then be made to the Public Utility Commission for a vote and final decision by the commissioners.

More information on the Public Utility Commission’s ratemaking process is available on the Commission’s website.

More information about Aqua Pennsylvania’s rate case can be viewed by accessing the following Public Utility Commission Dockets: R-2018-3003558, C-2018-3004331, R-20183003561.

For more information about Aqua Pennsylvania and to view its original rate filing visit www.aquaamerica.com/ourstates/pennsylvania.aspx

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