Incomplete Records Put 20,000 Pennsylvania American Water Customers at Risk of Losing Bill Discount Financial Assistance

Rhea-AI Summary

Pennsylvania American Water warns that approximately 20,200 customers risk losing their H2O Help to Others Bill Discount Program benefits due to incomplete income and household size verification records. The program, which provided $14 million in bill discounts to 34,300 customers in 2024, offers significant monthly savings ranging from $17.66 to $64.99 on water bills and $40.53 to $93.12 on wastewater bills.

The company offers discounts of 30-90% on service fees and 20-80% on volumetric charges for water customers, and 37-85% on total charges for wastewater customers with household incomes up to 200% of the Federal Poverty Income Guidelines. Customers have 10 days to respond when notified before being removed from the program. Verification can be completed through Dollar Energy Fund, the program administrator.

Positive

• Provided $14 million in bill discounts to 34,300 customers in 2024
• Offers substantial monthly savings up to $64.99 on water bills and $93.12 on wastewater bills
• Provides significant discounts ranging from 30-90% on service fees

Negative

• 20,200 customers at risk of losing benefits due to incomplete verification
• Short 10-day response window for verification compliance

Insights

Utility Sector Financial Analyst

This development carries significant implications for American Water Works (AWK) and its Pennsylvania subsidiary. The potential removal of 20,200 customers (approximately 59% of program participants) from the Bill Discount Program presents both immediate financial and operational challenges.

The financial impact warrants careful analysis: With monthly discounts ranging from $17.66 to $93.12, the aggregate annual value at risk could reach several million dollars. While program discontinuation would technically improve short-term revenue, it could lead to increased bad debt expenses and collection costs if customers struggle to pay full rates.

Three critical factors deserve attention:

• Regulatory Compliance: The new verification requirements likely stem from regulatory mandates, demonstrating AWK's commitment to proper program administration. This proactive compliance approach helps maintain positive relationships with regulators, important for future rate cases.
• Operational Efficiency: The company's multi-channel outreach strategy (18,000+ calls, direct mail, email, bill messaging) shows robust customer engagement capabilities, though the 59% non-response rate suggests potential communication challenges.
• Social Impact Management: The timing is particularly sensitive given persistent inflation pressures on consumers. The company's matching fund program and absorption of administrative costs demonstrate a balanced approach to stakeholder management.

The broader implications extend beyond immediate financials. This situation tests AWK's customer service infrastructure and could influence regulatory relationships in other states where similar assistance programs exist. The company's handling of this transition may set precedents for future program administration across its national operations.

New income and household size verification requirements in place

MECHANICSBURG, Pa.--(BUSINESS WIRE)-- The average customer enrolled in Pennsylvania American Water’s H2O Help to Others customer assistance Bill Discount Program saves between $17.66 and $64.99 on their water bill and/or $40.53 to $93.12 on their wastewater bill each month*, a utility savings welcomed by more than 30,000 program participants statewide, particularly amidst currently rising costs and significant inflation. That’s why the company is urging participating customers to comply with income verification requirements to maintain their program eligibility and enrollment. *Average savings based on four income-based assistance tiers.

“The Bill Discount Program is an important component of our recently expanded H2O Help to Others customer assistance offerings. Throughout 2024, we provided bill discounts totaling $14 million to approximately 34,300 enrolled customer accounts,” explained Tawana Dean, the company’s senior manager of customer compliance. “This assistance is one of the ways We Keep Life Flowing for our customers facing financial difficulty. We want to make sure that the benefit stays in place for those who need it. But we need them to act now!”

With new requirements, Pennsylvania American Water must now verify participating customers’ incomes and household size to ensure they meet and maintain program eligibility. Of the customers currently enrolled in the program, approximately 20,200 still need to provide income and household verification. If customers fail to verify these details, they risk being removed from the program and losing the monthly discount.

Over the past several months, Pennsylvania American Water has taken action to proactively notify those customers who still need to provide income verification by direct mail and email and bill messaging. The company also made more than 18,000 calls to potentially impacted customers in late 2024. When notified by the company - a process taking place on a staggered basis - customers have 10 days to respond before being removed from the bill discount program.

To provide income and household size verification and continue participation in Pennsylvania American Water’s Bill Discount Program, customers should contact Dollar Energy Fund, the H20 Helo to Others program administrator, by visiting http://www.DollarEnergy.org/MyApp or by calling 888-282-6816.

The Bill Discount Program saves many customers hundreds of dollars each year by offering those with household incomes up to 200% of the Federal Poverty Income Guidelines (FPIG) a 30-90% discount on service fees and a 20-80% discount on volumetric charges for water customers and a 37-85% discount on total charges for wastewater customers each month.

“We encourage our customers to learn more about our H2O Help to Others Program and take advantage of its offerings by visiting pennsylvaniaamwater.com/H2O,” Dean added. “In addition to monthly bill discounts, we offer annual grants, water-saving devices and education and an Arrearage Management Program for income-eligible customers. Our customers can also take advantage of budget billing and installment plans and preferred due date selection to help manage their bills.”

Pennsylvania American Water customers who would like to lend a hand to others in need can contribute to H2O Help to Others by adding a donation to their monthly water and/or wastewater bill. Since the company assumes all administrative costs, 100 percent of donations, as well as the company’s matching funds, go directly to qualifying customers.

About American Water

American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water’s 6,500 talented professionals leverage their significant expertise and the company’s national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.

For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.

About Pennsylvania American Water

Pennsylvania American Water, a subsidiary of American Water, is the largest regulated water utility in the state, providing high-quality and reliable water and wastewater services to approximately 2.3 million people.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250204886590/en/

Media Contact:

David Misner

Senior Manager, External Communications

717-262-7525

david.misner@amwater.com

Source: Pennsylvania American Water

FAQ

How many Pennsylvania American Water (AWK) customers risk losing their bill discount assistance?

Approximately 20,200 Pennsylvania American Water customers risk losing their H2O Help to Others Bill Discount Program benefits due to incomplete income and household size verification records.

What are the monthly savings for AWK's H2O Help to Others Program in Pennsylvania?

Customers save between $17.66 and $64.99 on their water bill and/or $40.53 to $93.12 on their wastewater bill each month, depending on their income tier.

How much did Pennsylvania American Water (AWK) provide in bill discounts during 2024?

Pennsylvania American Water provided bill discounts totaling $14 million to approximately 34,300 enrolled customer accounts throughout 2024.

What are the discount percentages offered by AWK's Bill Discount Program in Pennsylvania?

The program offers 30-90% discounts on service fees, 20-80% discounts on volumetric charges for water customers, and 37-85% discounts on total charges for wastewater customers.

How long do AWK customers have to verify their information to maintain program eligibility?

When notified by the company, customers have 10 days to respond with income and household verification before being removed from the bill discount program.