Pennsylvania American Water requests rate hikes.

Pennsylvania American Water has filed a request with the Pennsylvania Public Utility Commission to raise its water and wastewater rates.

The privately-owned utility company said that, if approved, the change would increase the typical residential water customer’s bill by about $14 per month. Residential customers of the Exeter Township wastewater plant would see their sewage bills rise by about $10 per month, the company said. Customers with combined storm water and wastewater systems would see an increase of about $20 per month.

The company’s proposal has prompted an Exeter Township activist and incoming township supervisor to schedule a community town hall on the rates, which have long been an issue for residents.

Commercial and industrial customers would also see increased rates.

In all, the rate increases are expected to produce an additional $168.7 million in revenue for Pennsylvania American Water. The company says the rate hikes are needed to support $1.2 billion in ongoing water and wastewater system investments.

“These investments directly benefit the communities we proudly serve and provide our customers with even more reliable service and improved water quality — from treatment to the tap,” Pennsylvania American Water President Justin Ladner said in a statement announcing the request. “It all underscores every employee’s commitment to the health and safety of our customers and the communities we serve.”

The company said upgrades are necessary for treatment facilities, storage tanks, wells and pumping stations in the more than 420 communities it serves across Pennsylvania.

There are plans to replace more than 100 miles of aging pipeline as well as valves, service lines and other parts of its 12,080-miles network of water and sewer lines.

The rate increase request will be reviewed by the PUC and be the subject of a public hearing. Customers with concerns about the request can share them with the PUC by submitting a letter, testifying at the hearing or filing a formal complaint.

Complaints must be filed by Jan. 13. A date for the hearing has not yet been set.

Community backlash

Water and wastewater rates have for several years been a point of contention in Exeter Township and other municipalities served by Pennsylvania American Water. And the announcement of the new rate hike request has already sparked some backlash.

“Their rates for Exeter Township residents are frequent discussion points for residents,” township manager William Heim said. “An increase will make it more difficult to make ends meet, especially with higher taxes and higher prices for goods and services.”

Local activist Amanda Johnson, who won a seat on Exeter’s board of supervisors in the Nov. 4 election, said customers in the township have been plagued for years with skyrocketing water and wastewater bills.

She said that before Pennsylvania American took over the system her quarterly bill was $86. Now, she said, it’s more than $300 per month.

Johnson will host a community town hall meeting on Dec. 1 to discuss the proposed new rates. It will be held at 6:30 p.m. at the Dunn Community Center, 4565 Prestwick Drive next to the Exeter Community Library.

“This is an all-hands meeting,” she said. “You don’t have to live in Exeter to attend this meeting.”

Johnson said the rate hikes will impact more than just Exeter customers, who have been particularly hard hit by wastewater bills. The changes, she said, will bring water bills closer to what wastewater customers are currently paying.

“I’m concerned people will get this rate hike notice and will think it’s junk mail and toss it,” she said. “Then they’ll get hit with this huge water bill. And there’s nothing that can be done once rates are changed and approved by the PUC.”

Johnson took issue with the company’s claims that the hikes are needed to invest in water and wastewater system improvements, saying they have used that rationale when asking for rate increase each year since 2019.

“I haven’t seen any improvements,” she said. “Meanwhile they’re making millions of dollars, and they’re not spending what they’re taking in. I need to see some results.”

Johnson said her town hall meeting will focus on the urgency of filing complaints with the PUC, as well as a timeline for the rate increase request process.