Pennsylvania American Water seeks 24% rate hike over 2 years

Water and sewer bills could increase by nearly 24% over a two-year period for Pennsylvania American Water customers if state regulators approve a rate-hike request.

Officials said the utility has invested more than $1.6 billion in infrastructure improvements, including replacement of more than 427 miles of aging water and sewer lines and upgrades to treatment facilities, storage tanks, wells and pumping stations.

“Not only are these investments critical to the public’s health and safety, but they also support the economic health of the communities we serve,” said Mike Doran, Pennsylvania American Water’s president. “This level of investment over a four-year period supports more than 25,000 jobs across the state and region.”

The utility provides water and sewage treatment for 2.4 million people in 400 municipalities in Pennsylvania, including significant portions of Allegheny and Washington counties.

Pennsylvania American Water

The coverage areas of Pennsylvania American Water.

The rate increases would generate $138.6 million in revenue over two years — $92.4 million in 2021 and $46.2 million in 2022.

If approved, the water bill for an average residential customer who uses 3,458 gallons a month would increase from the current charge of $57.85 to $65.91, or 13.9 percent in the first year.

The second year, water bills would increase to $69.73, or another 5.8%.

The average monthly residential sewer bill would increase from $60.42 to $71.97, or 19.1%, in the first year. A 6.8% increase in the second year would hike the average monthly sewer bill to $76.85.

The average Pennsylvania American customer currently receives a monthly $118.27 water and sewer bill. After the second round of rate hikes kick in, the bill would increase to $146.58 month — an increase of 23.9%.

It could take as long as nine months for state regulators to review and approve the rate increases, which would take effect in 2021.