Pennsylvania regulators are set to review a proposed rate increase from the state’s largest water and wastewater utility, a move that could raise bills for some customers by more than 40%.
Pennsylvania American Water Co. (PAWC) submitted the request last month, citing $1.2 billion in ongoing infrastructure upgrades. The publicly traded utility provides service to approximately 2.4 million residents across 37 counties.
The state Public Utility Commission (PUC) voted Thursday unanimously to send the proposal to its Office of Administrative Law Judge for a thorough investigation and recommendations. The review process will include public hearings, allowing consumers and other interested parties to provide testimony. The PUC will release dates, times, and locations for these hearings.
PAWC’s proposal seeks to increase total operating revenue by $168.7 million. For an average customer using 3,263 gallons per month, the increase would raise monthly bills between $2.73 and $27.77, or roughly 9.8% to 41.1%, depending on location. Sewer bills could climb by up to $26.29 per month, a 54% increase, if approved.
The utility said the additional funds would support modernization and improvement projects, including replacing 117 miles of aging water mains and 32 miles of sewer mains, removing lead service lines, and addressing contaminants such as polyfluoroalkyl substances (PFAS) in drinking water. PFAS are manmade chemicals found in products like nonstick cookware, stain-resistant carpets, waterproof clothing, and firefighting foam, known for persisting in the environment.
PAWC also proposed a sewer billing adjustment based on wintertime water use, when outdoor water consumption is lower, and a pilot program to assist low-income renters in buildings without separate apartment meters, who are otherwise ineligible for utility assistance.