![\"Pennsylvania](\"https:\/\/www.newsbeep.com\/us-pa\/wp-content\/uploads\/2025\/12\/REG-L-ExeterWastewaterTreatmentPlant-01.jpg\")
Pennsylvania American Water bought the Exeter wastewater treatment plant from the township in 2019 for $93.5 million. (Reading Eagle)<\/p>\n
The privately-owned utility company is a subsidiary of American Water, which brands itself as the largest regulated water and wastewater utility company in the United States. It provides water services to over 14 million people nationwide.<\/p>\n
Township officials sold the plant amid increasing regulatory scrutiny after a storm in 2018 resulted in the plant spilling 4 million gallons of wastewater into the Schuylkill River.<\/p>\n
\u201cThe plant and system were becoming an increasing burden on the township as federal and state regulations were becoming too difficult for the township to manage,\u201d John Granger, former Exeter Township manager, said at the time of the sale<\/a>.<\/p>\n Since then, customers in the Exeter area have seen steep increases in their water and wastewater rates.<\/p>\n In 2020, an Exeter residential customer who used 6,500 gallons would have paid $183, according to information provided by Amanda Johnsen.<\/p>\n The rate for the same monthly usage rose to $348 in 2024, after the Pennsylvania Utilities Commission approved Pennsylvania American Water\u2019s requests for rate hikes.<\/p>\n Plans for system improvements<\/p>\n Pennsylvania American representatives said the increases have helped fund vital improvements to Exeter\u2019s wastewater infrastructure.<\/p>\n They said the company has invested $32 million in Exeter\u2019s wastewater facilities since acquiring the system in 2019 and plans to invest another $46 million over the next five years.<\/p>\n \u201cMajor infrastructure projects are planned through 2027 and 2029, including the $23.5 million Exeter Equalization Tank project starting next year which will help prevent overflows and better manage stormwater,\u201d the company said in a statement. \u201cOnce completed, these improvements are expected to divert 7.5 million gallons of wastewater per year from Berks County waterways.\u201d<\/p>\n Now the company is requesting another rate increase<\/a>.<\/p>\n If approved, the change would increase the typical residential water customer\u2019s bill by about $14 per month, the company said.<\/p>\n Residential customers of the Exeter wastewater plant would see their sewage bills rise by about $10 per month, according to the company. Customers with combined storm water and wastewater systems would see an increase of about $20 per month.<\/p>\n The increases are expected to produce another $168.7 million in revenue for Pennsylvania American Water. The company says the rate hikes are needed to support $1.2 billion in water and wastewater system investments.<\/p>\n 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.<\/p>\n On Thursday, the Pennsylvania Public Utility Commission voted 5-0 to suspend Pennsylvania American Water\u2019s latest request for rate hikes<\/a> pending an investigation. It affects the company\u2019s proposed rate hikes for water and sewer customers in 37 counties.<\/p>\n The investigation suspends the rate increase request for seven months from the proposed effective date of Jan. 13.<\/p>\n The PUC said the investigation will include hearings to gather testimony from concerned consumers and interested stakeholders.<\/p>\n Town hall<\/p>\n Amanda Johnsen has a history of rallying against the water rate increases.<\/p>\n She runs a Facebook group with 1,700 members opposing the hikes and won a seat on the township board of supervisors in the Nov. 4 election.<\/p>\n On Monday, Johnsen held a town hall at Exeter\u2019s Dunn Community Center, where she discussed what residents can do to oppose the increase.<\/p>\n The meeting was attended by about 100 residents and several state officials, including state Sen. Judy Schwank and Reps. Mark Gillen and Jacklyn Rusnock.<\/p>\n \u201cJust my wife and I are paying $200 a month in water,\u201d one resident said. \u201cAnd that\u2019s just my wife and I. I can\u2019t imagine what a family of four are paying.\u201d<\/p>\n Johnsen told the Reading Eagle that before Pennsylvania American took over the system her quarterly bill was $86. Now, she said, it\u2019s more than $300 per month.<\/p>\n She said she had positive feelings about the Pennsylvania Utility Commission\u2019s vote to suspend the latest rate increase but urged residents to keep filing complaints.<\/p>\n \u201cWe can\u2019t stop now,\u201d Johnsen told\u00a0the\u00a0Reading Eagle\u00a0after the vote. \u201cThe PUC will need to hear from the public and needs your testimony as part of their investigation.\u00a0 We need to make it clear that the rates are outrageous and create an unbelievable hardship on our residents in Pennsylvania.\u201d<\/p>\n She said the PUC will take the complaints into account when it comes time for a hearing to determine whether to grant all, some or none of the requested rate increase.<\/p>\n A few in attendance said complaining about the rate increases is futile and questioned why the township hasn\u2019t tried to get out of its agreement with Pennsylvania American Water.<\/p>\n Johnsen said she floated the idea of leaving Exeter\u2019s water services agreement with township supervisors a few years prior.<\/p>\n \u201cThe cost of that exceeds the benefit because American Water will likely try to sue us,\u201d Johnsen said.<\/p>\n Customers took issue with the upcoming merger of American Water and Essential Utilities Inc., which provides water, wastewater and natural gas to 5 million people across nine states. The merger is expected to close by the end of the first quarter of 2027.<\/p>\n Johnsen and the state representatives said customers could include comments about the merger when filing complaints against the proposed rate increase with the PUC.<\/p>\n Others asked whether it would be possible to sue the township for approving the sale of the wastewater plant.<\/p>\n \u201cThis sale was legal and above board,\u201d Johnsen said. \u201cThe statute of limitations has run out on taking it back. We have to move forward and do what we can with what we have. Right now, the complaint process is what we have.\u201d<\/p>\n A few said complaining would be pointless because rate increases have been going through every year regardless of past complaints.<\/p>\n The Johnsens and state officials noted that while the complaints may not prevent the increase entirely, they can, and often do, sway the PUC to approve a lesser hike.<\/p>\n \u201cThis is the time where we really have to get an upswell,\u201d Schwank said. \u201cJust a huge amount of people to really do this. Don\u2019t say it\u2019s not going to work. We need to try.\u201d<\/p>\n She urged residents to describe how the rate increases have impacted their lives in their complaints.<\/p>\n \u201cWe can\u2019t take the impact away totally, but we can lessen the impact, and lessen it (the rate increase),\u201d Andrew Johnsen said. \u201c(Pennsylvania American Water) has a whole laundry list of reasons why they need the increase. And it all sounds good to the arbitrators. So we have to make our case too about why it hurts us.\u201d<\/p>\n Options for water bill assistance<\/p>\n![\"Pennsylvania](\"https:\/\/www.newsbeep.com\/us-pa\/wp-content\/uploads\/2025\/12\/REG-L-ExeterTreatmentPlantTighter.jpg\")
Pennsylvania American Water Company says it has invested $32 million in the Exeter Township wastewater facilities since acquiring the system in 2019 and plans to invest another $46 million over the next five years. (Reading Eagle)<\/p>\n