Residents of Exeter Township aired their grievances over a series of water and wastewater rate hikes since Pennsylvania American Water’s takeover of the township system.
At a hearing held by the Pennsylvania Public Utility Commission, residents argued that the rates they’re paying far eclipse their bills from before the system was acquired by PA American in 2019.
Pennsylvania Public Utility Commission Law Judges Jeffrey A. Watson and Emily DeVoe preside at a PUC hearing about proposed rate changes by the Pennsylvania American Water Company at the Dunn Community Center, 4565 Prestwick Drive, Exeter Township, on Tuesday, Jan. 20, 2026. (BILL UHRICH/READING EAGLE)
“In 2020, my average bill was $143 for 5,500 gallons,” said Keith Sauer, an Exeter resident. “Now, in 2025, my last bill was $309 for 5,600 gallons.”
Sauer said he pays more to PA American than his combined bills from FirstEnergy for electricity and UGI for gas.
“It (water) is a life-sustaining service, yet it’s priced like a luxury,” Sauer said.
Sauer and dozens of others added their concerns to the record at a pair of hearings Tuesday.
The hearings are part of an investigation by the PUC that will determine what portion, if any, of PA American’s latest requests for a rate increase will be approved.
That increase would see a typical residential water customer’s bill rise by about $14 per month, the company previously told the Reading Eagle.
Residential customers of the Exeter 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 face an increase of about $20 per month.
PA American representatives said they understood that rate changes can pose a challenge to households but said the hikes are needed to help cover $1.2 billion in improvements to meet updated state water standards and restore aging infrastructure.
“If our proposed projects are delayed, the potential risks to our systems and water quality increases,” said Teresa Harrold, the utility’s director of corporate counsel.
The PUC has until Aug. 13 to decide on the proposed hike.
Residents speak out
Like many who spoke, John Arty said he and his wife are retired and living on a fixed income.
Leroy Reinert, an Exeter Township resident and a service user, testifies at a Pennsylvania Public Utility Commission hearing at the Dunn Community Center, 4565 Prestwick Drive, Exeter Township, on Tuesday, Jan. 20, 2026, about proposed rate changes by the Pennsylvania American Water Company. (BILL UHRICH/READING EAGLE)
He said he contacted PA American to find out why his monthly bill had skyrocketed into the $300 range in 2025. Arty said PA American and a plumbing consultant advised him to switch out his toilets and bath fixtures.
“After spending thousands of dollars on new installations, we are still averaging close to $200 a month or more,” Arty said. “For a retired couple, $200 is a mountain we’re still trying to wrap our heads around.”
Arty said he used to rely on his tub’s jacuzzi function to ease his lower back pain after having surgery.
“The cost of water has eliminated that treatment,” Arty said. “We lost a number of newly planted shrubs last year due to our lack of water (use).”
If water rates continue to surge, Arty said he and his wife would be forced to move.
“While paying some of the highest taxes in Berks County, combined with the high water bills, it’s clear why many homeowners are moving out of Exeter,” Arty said.
Carla Seidel said her water bill is the highest utility bill her household has ever paid.
She said she and her husband are close to retirement and are seriously considering whether they can afford to stay in Exeter and pay the higher rates.
Dave Hurlbrink argued that PA American has yet to fulfill obligations it took on in 2019 to remediate the environmental threat the wastewater system posed under township ownership.
A storm in 2018 resulted in the leak of 4 million gallons of sewage into the Schuylkill River. The township sold the system amid increasing regulatory scrutiny following that event.
He said any rate increase should be denied until the Exeter wastewater system is repaired to a level that fully satisfies a DEP consent order issued after the leak.
“I believe these rate increases aren’t justified,” Hurlbrink said.
PA American responds
Harrold noted the DEP never specified a timeline for when the DEP order should be satisfied and questioned whether government permitting requirements could be the reason the work on the wastewater system isn’t finished.
As to the reason for the rate increases, Harrold said the American Society of Civil Engineers rated the state’s water and wastewater infrastructure poorly.
She said the company’s proposed improvements encompass hundreds of projects that repair and replace infrastructure that is decades to over 100 years old, eliminate lead service lines, and remove harmful chemicals from drinking water.
She listed a few projects in the region, including:
• New wastewater equalization tanks at the Exeter treatment plant to reduce the amount of untreated sewage going into local waterways.
• Installing water and sewer main extensions to the township firehouse, at the township’s request.
• System upgrades in Reading to improve water quality.
• A main extension and pump station improvements in Upper Pottsgrove Township to provide public sewer to residents with failing septic systems.
• Replacing the wastewater treatment plant in Royersford.
In December, the company announced plans for a new water treatment plant in Exeter that would serve 25,000 customers.
Harrold said PA American funds its improvements in part by pursuing state grants and loans, which have saved an estimated $100 million since 2024.
She also noted that PA American’s rate increases keep average water bills under affordability standards laid out by the EPA.
For lower income residents, Harrold said PA American has assistance programs like a hardship fund that offers $500 per year toward water and wastewater bills, respectively, to families with an income of up to 250% of the federal poverty level.
The company is proposing a “deduct adjustment,” which calculates summertime wastewater charges based on a customer’s average winter water usage, when outdoor use is typically low.
Keith Brubacher of Brubacher Excavating Inc., which works with PA American., was one of several professionals who testified in support of the proposed increases.
He and a few others, such as engineer Clayton Bubeck, whose company does safety training with PA American, argued that not investing in an infrastructure fix poses a greater threat of service disruptions and other emergencies involving a failed system.
Brubacher said his company makes a higher profit on emergency work than it does on preventative maintenance.
“If I was focused solely on profit margins, I would testify against this rate increase,” Brubacher said.
More opposition
Sen. Judy Schwank.spoke against the rate increase, noting that she has a history of speaking out against PA American’s hikes.
State Sen. Judy Schwank testifies on the effects a rate increase would have on her constituents at a Pennsylvania Public Utility Commission hearing at the Dunn Community Center, 4565 Prestwick Drive, Exeter Township, on Tuesday, Jan. 20, 2026 about proposed rate changes by the Pennsylvania American Water Company. (BILL UHRICH/READING EAGLE)
“The theme of my testimony over the years has remained the same,” the Wyomissing Democrat said. “Enough is enough.”
She said it would be unjust, unreasonable and illegal to grant PA American another hike at a time when people are struggling to cover basic needs.
Schwank said PA American’s characterization of “average rates” often underestimates the impact of a rate increase for many customers.
“My office has yet to hear about an $81 (per month) water bill, which PA American uses as their average,” Schwank said.
Schwank took issue with a proposal from PA American to add a surcharge to bills to recoup the costs of customer assistance programs.
“Through this proposal, the company is … essentially putting the cost of it (customer assistance) on the shoulders of rate payers,” Schwank said.
In addition, Schwank said water rates can end up pricing businesses and other non-residential customers out of the area, potentially costing jobs and placing an even larger tax burden on residents.
Exeter residents have been hit hard enough by rate hikes, said Amanda Johnsen, an Exeter Township supervisor and activist against water rate increases.
“I’ve heard complaints from our residents about applying for assistance and being denied,” Johnsen said. “People having to take less hours at work or quit one of their multiple part-time jobs because they don’t qualify for water assistance. But they still need to find a way to make ends meet and pay a $400 water bill.”
Johnsen said the turnout at the hearing Tuesday was relatively low because rate payers are demoralized.
“People aren’t willing to accept that $400 or $500 bill, but they assume it (the rate increase) will be rubber-stamped,” Johnsen told the PUC. “Please give us a break. They don’t need a rate increase.”
She said PA American has collected enough money from the community.
“If your executives are making millions of dollars annually but you’re asking for more money from your ratepayers, you’re not doing something right,” Johnsen said.