Pennsylvania American Water Receives Rate Order from Pennsylvania Public Utility Commission
Pennsylvania American Water received approval from the Pennsylvania Public Utility Commission (PUC) for adjusted water and wastewater rates, reflecting $1 billion in infrastructure investments through mid-2025. The order includes a $99.3 million annualized revenue increase, 9.45% Return on Equity, and 55.3% equity approval. Key points:
1. Expanded customer assistance programs, increasing eligibility for discounted service.
2. Improved infrastructure for water quality, reliability, and fire protection.
3. New rates effective Aug. 7, with exceptions for Foster Township and York City.
4. PUC initiated an investigation into water service issues in the Northeastern territory.
5. Company affirms commitment to high-quality, reliable, and affordable services.
Pennsylvania American Water ha ricevuto l'approvazione dalla Pennsylvania Public Utility Commission (PUC) per l'adeguamento delle tariffe per acqua e acque reflue, che riflettono un investimento in infrastrutture di 1 miliardo di dollari entro la metà del 2025. L'ordine prevede un Aumento annualizzato dei ricavi di 99,3 milioni di dollari, un ritorno sul capitale azionario del 9,45% e un'approvazione del capitale proprio del 55,3%. Punti chiave:
1. Espansione dei programmi di assistenza ai clienti, aumentando l'idoneità per i servizi scontati.
2. Miglioramento delle infrastrutture per la qualità dell'acqua, l'affidabilità e la protezione antincendio.
3. Nuove tariffe in vigore dal 7 agosto, con eccezioni per Foster Township e York City.
4. Il PUC ha avviato un'inchiesta sui problemi di servizio idrico nella zona nord-orientale.
5. L'azienda ribadisce il proprio impegno per servizi di alta qualità, affidabili e accessibili.
Pennsylvania American Water recibió la aprobación de la Pennsylvania Public Utility Commission (PUC) para ajustar las tarifas de agua y aguas residuales, que reflejan $1 mil millones en inversiones en infraestructura hasta mediados de 2025. La orden incluye un aumento de ingresos anualizado de $99.3 millones, un retorno sobre el capital del 9.45% y una aprobación de capital propio del 55.3%. Puntos clave:
1. Ampliación de los programas de asistencia al cliente, aumentando la elegibilidad para el servicio con descuento.
2. Mejora de la infraestructura para la calidad del agua, la confiabilidad y la protección contra incendios.
3. Nuevas tarifas efectivas a partir del 7 de agosto, con excepciones para Foster Township y York City.
4. El PUC inició una investigación sobre los problemas de servicio de agua en el territorio noreste.
5. La empresa reafirma su compromiso con servicios de alta calidad, confiables y asequibles.
펜실베이니아 아메리칸 워터는 펜실베이니아 공공 유틸리티 위원회(PUC)로부터 수도 및 폐수 요금 조정을 승인받았으며, 이는 2025년 중반까지 10억 달러의 인프라 투자 비용을 반영합니다. 이 명령에는 연간 9930만 달러 매출 증가, 9.45%의 자기자본 수익률, 55.3%의 자본 승인 등이 포함되어 있습니다. 주요 사항:
1. 할인 서비스 eligibility를 높이는 고객 지원 프로그램 확대.
2. 수도 품질, 신뢰성 및 화재 보호를 위한 인프라 개선.
3. 8월 7일부터 시행되는 새로운 요금, 포스터 타운십 및 요크 시에 대한 예외.
4. PUC가 북동부 지역의 수돗물 서비스 문제에 대한 조사를 시작했습니다.
5. 회사는 고품질, 신뢰할 수 있고 저렴한 서비스에 대한 약속을 재확인합니다.
Pennsylvania American Water a reçu l'approbation de la Pennsylvania Public Utility Commission (PUC) pour l'ajustement des tarifs de l'eau et des eaux usées, reflétant 1 milliard de dollars d'investissements dans les infrastructures d'ici mi-2025. L'ordre comprend une augmentation de revenus annualisée de 99,3 millions de dollars, un retour sur fonds propres de 9,45% et une approbation de capital de 55,3%. Points clés :
1. Programmes d'assistance aux clients élargis, augmentant l'éligibilité pour les services à tarif réduit.
2. Amélioration des infrastructures pour la qualité de l'eau, la fiabilité et la protection contre les incendies.
3. Nouveaux tarifs en vigueur à partir du 7 août, avec des exceptions pour Foster Township et York City.
4. La PUC a lancé une enquête sur les problèmes de service d'eau dans le territoire nord-est.
5. L'entreprise réaffirme son engagement envers des services de haute qualité, fiables et abordables.
Pennsylvania American Water hat die Genehmigung der Pennsylvania Public Utility Commission (PUC) für angepasste Wasser- und Abwasserpreise erhalten, die 1 Milliarde Dollar an Infrastrukturinvestitionen bis Mitte 2025 widerspiegeln. Die Anordnung umfasst eine jährliche Umsatzsteigerung von 99,3 Millionen Dollar, eine Eigenkapitalrendite von 9,45% und eine Eigenkapitalgenehmigung von 55,3%. Wichtige Punkte:
1. Erweiterte Programme zur Kundenunterstützung, die die Berechtigung für ermäßigte Dienstleistungen erhöhen.
2. Verbesserte Infrastruktur für Wasserqualität, Zuverlässigkeit und Brandschutz.
3. Neue Tarife treten am 7. August in Kraft, mit Ausnahmen für Foster Township und York City.
4. PUC hat eine Untersuchung zu Problemen im Wasserdienst im Nordosten eingeleitet.
5. Das Unternehmen bekräftigt sein Engagement für hochwertige, zuverlässige und erschwingliche Dienstleistungen.
- $99.3 million annualized revenue increase approved
- 9.45% Return on Equity and 55.3% equity approved
- Expanded customer assistance programs, potentially benefiting 55,000 additional customers
- $1 billion in infrastructure investments approved through mid-2025
- Increased monthly bill discounts from 30-80% to 30-90% for eligible customers
- PUC initiated investigation into water service and quality issues in Northeastern service territory
- Temporary aesthetic disturbances reported by some customers due to system improvements
Insights
The Pennsylvania Public Utility Commission's (PUC) order approving new water and wastewater rates for Pennsylvania American Water is a significant event for investors. The key details include a total annualized revenue increase of
From a market perspective, the rate adjustment and infrastructure investment by Pennsylvania American Water are strategic moves to enhance service reliability and compliance with stringent regulations. The PUC's approval signals regulatory support, which is important for utility companies. The expansion of customer assistance programs indicates a customer-centric approach, likely boosting customer satisfaction and loyalty. The company's commitment to affordability and customer support, reflected in the expanded bill discount programs, is a positive factor that could mitigate any backlash from rate increases. This move aligns with broader industry trends towards sustainability and social responsibility, likely enhancing the company's reputation and market position.
The PUC’s order also includes an investigation into water service and quality issues in Pennsylvania American Water’s Northeastern service territory. This investigation stems from customer complaints and public input hearings. While the company has been proactive in addressing these concerns, the outcome of this investigation could have legal and regulatory implications. Additionally, the appeal of the BASA acquisition approval adds another layer of uncertainty. Although the company is committed to resolving these issues, investors should keep an eye on the investigation’s progress and the Commonwealth Court's decision on the appeal. These factors could impact the company’s operational and financial stability if not resolved favorably.
Reflects
“Pennsylvania American Water is committed to making needed infrastructure improvements across our service areas so we can continue to comply with more stringent drinking water standards and environmental regulations while keeping our systems resilient in the face of floods, droughts and other weather-related risks,” said Pennsylvania American Water President Justin Ladner. “We appreciate the Commission’s recognition of these critical investments, and we will continue to remain focused on efficiencies to help maintain affordable rates.”
The PUC also approved the company’s proposal to expand its income-based monthly bill discount program to include customers between 151 percent and 200 percent of the Federal Poverty Level (FPL), resulting in an estimated 55,000 additional customers being eligible to receive discounted service. The order also expanded eligibility for hardship fund grants from 201 to 250 percent of FPL.
Underscoring its commitment to affordability, the company’s current H2O Help to Others Program™ offers three tiers of discounts off monthly water and wastewater bills for income-eligible customers, and the PUC’s order expanded the amount of the monthly discounts from 30-80 percent to 30-90 percent. Last year, customers received approximately
The PUC encouraged the company to strive to set a target donation to its hardship fund of an additional
Additionally, as part of this approval, the PUC initiated an investigation into reported water service and water quality issues in the company’s Northeastern service territory, based on testimony given in public input hearings held as part of the rate request proceeding.
With 33 of Pennsylvania American Water's water treatment plants nationally recognized with Directors Awards for participating in the EPA's Partnership for Safe Water, Pennsylvania American Water affirms its commitment to high-quality, reliable and affordable water and wastewater services.
“Our water meets all state and federal drinking water regulations, and we take customer comments about water quality very seriously,” stated Ladner. “We acknowledge that some customers experienced temporary aesthetic disturbances associated with system improvements and operational maintenance, and we will work with the Commission on matters raised. As part of this commitment, we attempted personal outreach to every customer who raised a water quality concern during the public hearings to better understand and resolve their issues.”
New rates will take effect on Aug. 7, except wastewater rates for the recently acquired systems of
About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in
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.
AWK-IR
View source version on businesswire.com: https://www.businesswire.com/news/home/20240723593894/en/
Media:
David Misner
Senior Manager, External Communications
C: 717-261-7525
david.misner@amwater.com
Source: Pennsylvania American Water
FAQ
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