East Deer braces for large increase in water rates

East Deer Commissioners are searching for options to ease an expected hefty increase in residents’ water rates.

Tarentum Borough, from which the township purchases water in bulk, approved a rate increase in December as part of its 2022 budget. The East Deer increase takes effect May 1.

Rates for East Deer are structured so that, each quarter, the township pays $5.15 per 1,000 gallons for the first 200,000 gallons, a rate that decreases incrementally for each additional 200,000 gallons down to $3.91 for every 1,000 gallons used between 800,000 and 1 million gallons.

The charging structure totals $44,980 for the first 1 million gallons per quarter.

But commissioners Chairman Tony Taliani said the real impact will be on the rate charged for every 1,000 gallons used beyond 1 million gallons.

That rate will rise from the current $3.84 per 1,000 gallons to $4.65, he said. It amounts to a 21% increase in that part of the rate structure.

“We usually use between 9 (million) and 11 million gallons per month,” Taliani said.

Based on his estimate, East Deer would be paying between $103,140 and $126,060 for water each quarter on top of the $44,980 quarterly base rate.

“Between now and the April meeting, we have to study that increase and figure out what action we’re going to take,” he said. “Chances are, we are probably going to have to raise our water rates, and substantially.”

“It’s the third increase in the last 13 months,” Taliani added.

When Tarentum enacted the rate Dec. 20, the resolution cited increasing operating costs ranging from labor to chemicals and electricity to plant maintenance.

“They feel they are not making enough money and they’ve got to pay their bills,” Taliani said.

He cited the closure of Pittsburgh Glass Works, where the former PPG Industries glass plant was in Creighton, as a factor. He said the facility used a huge amount of water in its manufacturing process.

“PPG was a big, big loss, for them and for us,” Taliani said.

He said the township is exploring other options but would not elaborate.

East Deer is not alone. Its increase was part of an across-the-board rate hike that affected Tarentum residents, whose base rate rose, and businesses as well as all bulk users.

“We recognize that the increase in water rates is undesirable to our customers, especially in light of the other difficulties we face in the current economy, but the borough is also facing those same economic hardships,” Tarentum borough manager Mike Nestico said when the increases were approved.

By applying the bulk of the increase on the overage rate, council tried to apply the most equitable means for cost increases, he said.

“Those using more water are paying a larger share of the increased costs,” he said.