Impact of increased water cost on East Deer residents not known yet

East Deer will soon be paying more for water, but township officials don’t yet know if that cost will be passed on to township residents.

East Deer buys water in bulk from neighboring Tarentum, whose council recently approved increasing the cost by 3 cents per 1,000 gallons beginning Dec. 1.

Under a contract dating back to 1972, it’s the most Tarentum can increase its charge to East Deer without increasing rates on its own customers. The contract has been extended to 2032.

In 2020, Tarentum approved a 15% increase in the rates it charges East Deer.

Tarentum Manager Michael Nestico said the latest increase will add $800 to $900 to East Deer’s quarterly bill. East Deer Commissioner Tony Taliani said the township pays Tarentum between $90,000 and $105,000 per quarter; the last bill was about $103,000.

Taliani said East Deer commissioners have not discussed if the township will absorb the increase or pass it along to its customers in their bills.

East Deer commissioners next meet on Sept. 9.

“We’ll evaluate our financial situation as we work on our budget,” Taliani said. “We have time to evaluate this.”

With the increase, the rate schedule ranges from $4.68 per 1,000 gallons for the first 200,000 gallons, down to $3.81 per 1,000 gallons for all water over 1 million gallons.

Taliani said East Deer has been buying less water from Tarentum since the Pittsburgh Glass Works windshield factory closed in 2018. Although Iron City maker Pittsburgh Brewing Co. is moving its beer production into the facility, Taliani isn’t sure how its water use will compare once production begins.

Tarentum approved a larger increase for other bulk water buyers, such as PennDOT and construction firms that draw from the borough’s supply when needed.

The bulk water rate is increasing by 15.3%, from $7.50 per 1,000 gallons to $8.65 per 1,000 gallons.

That rate had not been increased since 2014, Nestico said.