HARRISBURG, Pa. (WHP) — The Pennsylvania Public Utility Commission (PUC) voted Thursday in favor of a significant reduction to Pennsylvania American Water Company’s (PAWC) proposed water and wastewater rate increases.

The commission approved a 4-1 vote to modify the company’s proposed rates and to adjust its recommended return on common equity, according to a news release.

Under the commission’s order, PAWC will receive an overall revenue increase of $74.9 million, including a 4.75% increase in its water operations and a 14.2% increase in its wastewater operations.

The rates, which will take effect Thursday, are substantially lower than what the utility company originally had in mind.

Originally, PAWC proposed a 15% increase in annual water revenue, worth around $143.4 million, while also seeking a 7.7% wastewater revenue increase, totaling roughly $16.1 million.

PUC Commissioner Kathryn Zerfuss acknowledged that, while the law permits a public utility company to recover costs for improving its infrastructure, the increase is more than she can support due to “affordability pressures facing ratepayers.”

The vice chair of PUC, Kimberly Barrow, referred to the proposed water rate hike as “no longer balanced between utility financial health and what consumers pay.”

CBS 21 previously spoke with several York County customers about the upcoming rate increase amid a $4 million wastewater facelift, and reactions were mixed.

RELATED | Water rates going up as York wastewater system gets $4M upgrade

“I mean, water is going up, electric, all the utilities, it’s just overwhelming,” Milton Baltimore said. “Everything’s going up but the paycheck.”

A retired Pennsylvanian told CBS 21 he has to live off a fixed income and found himself questioning whether the rate increases and investment outweigh the higher bills.

Meanwhile, others said the increase was relatively reasonable compared to inflated costs everywhere else.

“I only pay about $50 a month for water,” Chris Orchard said. “At 5%, that obviously would only mean another $2.50.”

The company, which is responsible for servicing more than 800,000 customers across 38 counties, last filed for a base rate increase in 2023.

According to the news release, the commission’s order also includes measures to enhance customer service and provide additional protections to PAWC customers.