Public hearings on tap in Pennsylvania American Water’s rate-hike request

The public will get its say starting this week on Pennsylvania American Water Co.’s proposed rate hikes ranging from $120 to $240 more per year, depending on whether a customer receives water or wastewater service or both.

Locally, the state Public Utility Commission will hold two hearings Thursday at 1 and 6 p.m., at the University of Scranton’s Brennan Hall, fifth floor, 320 Madison Ave. This pair of hearings in Scranton, which are the only hearings to be held in Northeast Pennsylvania, are among 10 in-person hearings scheduled in pairs in four locations throughout the state, all also at 1 and 6 p.m. each day.

The first pair of in-person hearings will be held: Tuesday in the city of Washington, southwest of Pittsburgh. The others will be held Friday in Harrisburg; Jan. 20 near Reading; “] and Jan. 29 in Coatesville.

Preregistration is not required to attend an in-person hearing.

The PUC also plans a pair of telephonic hearings for Wednesday, Jan. 21, at 1 and 6 p.m. Preregistration is encouraged for participating in telephonic hearings. For information on participating, visit puc.pa.gov.

In a statement Monday, PAW spokeswoman Alana Roberts said: “This week’s public input hearings offer Scranton customers a chance to give feedback to the Pennsylvania Public Utility Commission. Since acquiring the Scranton Sewer Authority, we’ve completed 41 projects that prevent 118 million gallons of overflow from reaching the Lackawanna River yearly. We’re enhancing spillway safety and flood management at Maple Lake, Marshwood, and Dunmore Dam No. 7. These efforts demonstrate our commitment to cleaner waterways, safer infrastructure, and reliable service as part of a $1.2 billion statewide plan.”

Cost to ratepayers

Pennsylvania American Water serves 682,000 water customers and 97,000 wastewater customers in 37 counties across the state.

The water company proposes an overall increase of $168.7 million (about 14.6%) in total annual operating revenues for water and wastewater service.

According to a PUC announcement Monday about the upcoming hearings, the rate increases sought include:

•  Water: For a typical residential water customer using 3,263 gallons a month, an increase ranging from $2.73 per month to $27.77 per month, an increase between 9.8% and 41.14%, depending on their service area. In a November announcement, the water company estimated the water increase for a typical customer at $168 a year, or $14 per month.

• Wastewater: For a typical wastewater customer using 3,164 gallons a month, an increase ranging from $0 per month to $26.29 per month, an increase between 0% and 54.14%, depending on their service area. The PAW estimate for a typical customer was $120 a year, or $10 per month.

• Combined water/wastewater: $240 a year, or $20 per month.

The water company proposes no change to wastewater rates for Scranton wastewater customers.

System improvements

The announcement said the increases would support $1.2 billion in ongoing water and wastewater service system investments through mid-2027 for more than 2.4 million people served statewide; as well as a new summer wastewater billing adjustment and a renter assistance pilot to expand an existing affordability program.

The investment will replace 117 miles of aging water main, continue eliminating lead service lines, and address emerging contaminants such as PFAS in drinking water; and also support wastewater system upgrades, including replacement of 32 miles of aging sewer mains.

The rate request also includes:

• A “deduct adjustment” that calculates summertime wastewater charges based on a customer’s average winter water usage when outdoor use is typically low. The adjustment excluding seasonal outdoor uses such as lawn watering and car washing would provide a more accurate representation of water entering the wastewater system.

• A Renter Assistance Pilot Program to support low-income renters in master-metered buildings who are currently excluded from traditional utility aid. The pilot program would provide quarterly stipends for participating customers in Scranton and Butler, reflecting the company’s existing discount levels.

Roberts also said, “To make service more affordable, our request to the PUC also proposes a seasonal adjustment to wastewater bills and a new renter assistance pilot in Scranton, building on our Customer Assistance Program to provide innovative support for those who need it most.”

Additional details about the company’s filing are available at www.amwater.com/paaw/FromTreatmentToTap.

A final PUC decision on the rate increase request is due by Aug. 13.

PUC slashed prior rate-hike request

This PAW rate-hike request follows one from November 2023 that had generated significant opposition from area legislators, residents and the municipalities of Scranton and Dunmore, as well as complaints about water quality and service.

In that case, the PUC in July of 2024 slashed the rate-hike request by over $100 million, or more than 50%, and started an investigation of the company’s water quality and service in its Northeast Pennsylvania territory. This area includes the counties of Carbon, Lackawanna, Lehigh, Luzerne, Monroe, Northampton, Pike, Schuylkill, Susquehanna, Wayne and Wyoming. In these counties, PAW has 36 water systems, each with their own operating characteristics and raw water quality, and the largest of which is Scranton’s water system.

A PUC report dated May 7, 2024, and issued Aug. 5, 2024, on the investigation said it did not find any systemic problems, but identified localized issues involving breaks of old pipes and levels of chlorine and the mineral manganese in water. At the time of that report, the water company had already implemented or completed projects to address these matters. The report called for continued monitoring over the next three years of PAW’s northeast service area.