Pennsylvania American Water Invites Customers to Participate in PA PUC Public Input Hearings on Rate Request

Rhea-AI Summary

Pennsylvania American Water is seeking public input on its recent rate request driven by $1 billion in water and wastewater system investments to be made between 2024 and 2025. The company aims to expand its income-based monthly bill discount program to include more customers, potentially benefiting an estimated 55,000 additional customers. In-person and telephonic public hearings will be held between Jan. 29 and Feb. 7, 2024, to gather customer feedback on the rate request.

Insights

Economist

The request by Pennsylvania American Water to adjust water and wastewater rates is a significant economic event, as it involves a substantial investment of $1 billion. This investment is indicative of a large-scale infrastructure upgrade, which can lead to improved efficiency and service reliability. However, it's important to consider the economic implications for customers, especially given the expansion of the income-based monthly bill discount program.

While the proposed rate adjustments aim to cover the costs of the system improvements, they could also impact household budgets, particularly in lower-income brackets. The expansion of the discount program to include customers up to 200 percent of the FPL is a mitigating measure that reflects a growing trend of utilities addressing affordability concerns. From an economic standpoint, this move could enhance customer satisfaction and reduce the risk of bill delinquency, but it also raises questions about the long-term sustainability of the utility's financial model.

Market Research Analyst

The public hearings on Pennsylvania American Water's rate request present an opportunity to gauge customer sentiment and potential market reactions. The company's proactive engagement with the public through in-person and telephonic hearings is a strategic move to foster transparency and gather stakeholder feedback.

In terms of market impact, investor confidence could be affected by the outcome of these hearings. If the rate increase is perceived as too aggressive or if there is significant public opposition, it could lead to reputational risks and potentially impact the company's stock performance. Conversely, successful implementation of the rate adjustments, coupled with the infrastructure investments, could signal to investors a commitment to long-term growth and stability, possibly leading to a more favorable market response.

Environmental Consultant

Infrastructure investments in water and wastewater systems are critical for environmental sustainability and public health. The proposed $1 billion investment by Pennsylvania American Water is likely to involve the adoption of advanced technologies for water treatment and distribution, which can have positive environmental outcomes, such as reduced water loss and contamination risks.

It's essential to consider the environmental benefits of such investments, which can lead to conservation of water resources and improved ecosystem services. However, these benefits must be weighed against the cost to consumers and the potential for increased water bills to disproportionately affect economically vulnerable populations, despite the expanded discount program.

During a series of 12 in-person and telephonic hearings Jan. 29-Feb. 7, customers can provide input on the company’s water and wastewater rate request, driven by $1 billion invested

MECHANICSBURG, Pa.--(BUSINESS WIRE)-- Pennsylvania American Water will join the Pennsylvania Public Utility Commission (PUC) to hear public comment on the company’s recent rate request during a series of eight in-person and four telephonic public hearings to be held between Jan. 29 and Feb. 7. Customers are invited to provide input on the rate request Pennsylvania American Water filed on Nov. 8, 2023, to adjust its water and wastewater rates.

The rate request reflects $1 billion in water and wastewater system investments to be made between 2024 and 2025 to continue providing safe and reliable service. Any new rates would not take effect until August 2024, except for certain recently acquired systems where the rate increases are proposed to take effect at later dates. As part of the filing, the company is seeking approval to expand its income-based monthly bill discount program to include customers between 150 percent and 200 percent of the Federal Poverty Level (FPL), which would result in an estimated 55,000 additional customers being eligible to receive discounted service.

In-Person Public Hearings:

Monday, Jan. 29, 2024 – Port Vue, Allegheny County
1 p.m. and 6 p.m.
Port Vue Social Hall
1191 Romine Avenue
Port Vue, PA 15133

Tuesday, Jan. 30, 2024 – Scranton
1 p.m. and 6 p.m.
Scranton Cultural Center
420 N. Washington Avenue
Scranton, PA 18503

Wednesday, Jan. 31, 2024 – Exeter Township/Reading, Berks County
1 p.m. and 6 p.m.
Dunn Community Center
4565 Prestwick Drive
Reading, PA 19606

Tuesday, Feb. 6, 2024 – Harrisburg
1 p.m. and 6 p.m.
Hearing Room 1
Keystone Building
400 North Street
Harrisburg, PA 17120

Telephonic Public Hearings:

Monday, Feb. 5, 2024
1 p.m. and 6 p.m.

Wednesday, Feb. 7, 2024
1 p.m. and 6 p.m.

Full hearing details and pre-registration instructions are available here. If you wish to testify at a telephonic public input hearing, you must pre-register with the OCA by Thursday, Feb. 1, 2024, to receive the call-in information.

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 (formally Twitter) and Instagram.

About Pennsylvania American Water
Pennsylvania American Water, a subsidiary of American Water is the largest investor-owned 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/20240116362446/en/

Media:

Laura Martin, Sr. Director, Government & External Affairs

C: 304-932-7158

E: laura.martin@amwater.com

Source: Pennsylvania American Water

FAQ

When is Pennsylvania American Water's rate request public hearings scheduled?

The in-person and telephonic public hearings will be held between Jan. 29 and Feb. 7, 2024.

What is the reason behind Pennsylvania American Water's rate request?

The rate request is driven by $1 billion in water and wastewater system investments to be made between 2024 and 2025.

What is the goal of expanding Pennsylvania American Water's income-based monthly bill discount program?

The company aims to include customers between 150 percent and 200 percent of the Federal Poverty Level, potentially benefiting an estimated 55,000 additional customers.

How can customers provide input on Pennsylvania American Water's rate request?

Customers can provide input during the in-person and telephonic public hearings scheduled between Jan. 29 and Feb. 7, 2024.

How can customers testify at the telephonic public input hearings?

Customers must pre-register with the OCA by Thursday, Feb. 1, 2024, to receive the call-in information if they wish to testify at a telephonic public input hearing.