Aqua Pennsylvania Files Rate Request Based on Water and Wastewater Infrastructure Repairs and Improvements Statewide

Rhea-AI Summary

Aqua Pennsylvania has filed a request with the Pennsylvania PUC to increase water and wastewater rates to recover $1.1 billion spent on infrastructure upgrades. This includes replacing over 400 miles of aging water mains and enhancing service reliability. If approved, typical monthly residential water bills will rise from $69.35 to $81.32, while wastewater bills will go from $55.51 to $73.95. The request aims for a $97.7 million revenue increase. Aqua serves 1.5 million people and highlights its commitment to providing safe drinking water and efficient wastewater services.

Positive

• Investment of $1.1 billion in infrastructure upgrades enhances service reliability and water quality.
• Replacement of over 400 miles of aging infrastructure reduces environmental impacts and water main breaks.
• New environmental laboratory supports over 90,000 water quality tests annually.

Negative

• Proposed rate increases may burden customers, with residential water bills rising by $11.97 monthly.
• Increased wastewater bills from $55.51 to $73.95 may be financially challenging for some customers.

Aqua Pennsylvania Inc. filed an application with the Pennsylvania Public Utility Commission (PUC) today requesting an increase in water and wastewater rates for its customers. The primary reason for the request is the recovery of $1.1 billion the company has prudently spent to upgrade its distribution and treatment systems, improving drinking water quality and service reliability throughout its water and wastewater operations.

“Since our last rate case, Aqua will have replaced more than 400 miles of aging water main, as well as associated valves, service lines and fire hydrants throughout approximately 5,800 miles of distribution system. These critical improvements enhance service by reducing the number of water main breaks and leakage that can occur from older pipes, thereby reducing environmental impacts,” said Aqua Pennsylvania President Marc Lucca. “We also opened a new state-of-the-art environmental laboratory this year to help us continue our long history of providing safe drinking water to our customers and returning clean wastewater to the environment.” Aqua’s laboratory employees perform about 90,000 water quality tests a year.

A significant portion of Aqua’s capital program has been dedicated to upgrading and rehabilitating treatment plants and wells, including the installation of equipment to meet new, more stringent water quality requirements for increased sustained disinfection. Improvements to wastewater operations include collection system replacement and renewal, treatment plant rehabilitation to ensure reliable operation and that high-quality treated water is returned to the environment, upgrades to electrical systems, and the installation of generators to ensure continued service during power outages. Given increasing external threats, Aqua also invested heavily in cybersecurity programs to protect the computer systems used to operate treatment plants as well as those used to maintain sensitive customer and company data.

“Providing safe, reliable drinking water and wastewater service to our customers and communities is essential to their health, quality of life, environment and economic well-being,” Lucca said. “The vital nature of our mission became even more evident as our employees continued to serve our customers and improve our water and wastewater infrastructure during the COVID-19 pandemic. It’s imperative that we maintain and improve our critical infrastructure to ensure our service is ready when our customers need it.”

If the company’s full request were to be approved, it would increase a residential water bill for a typical customer using 4,000 gallons per month from $69.35 to $81.32, an increase of $11.97 a month (40 cents a day). The average monthly residential wastewater bill would increase from $55.51 to $73.95. Any new base rates set by the PUC would not be effective until 2022.

With over 490,000 water and wastewater customers throughout Pennsylvania, the company said its $1.1 billion of capital spending since the last rate request equates to an average investment of about $2,245 per customer.

If the PUC were to grant the entire request, the typical Aqua residential customer would still be able to have a day’s worth of water, approximately 134 gallons, for approximately $2.71 — or about 2 cents per gallon for quality water delivered directly to the customer’s home. This usage includes cooking, drinking, showering, washing clothes and dishes, and sanitation. The requested increase in annual revenue for Aqua is $97.7 million.

Customers can call Aqua at 877.987.2782 for more information about the rate request.

Aqua Pennsylvania serves approximately 1.5 million people in 32 counties throughout the Commonwealth of Pennsylvania. Visit AquaAmerica.com or follow Aqua on Facebook at facebook.com/MyAquaAmerica and on Twitter at @MyAquaAmerica.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates” and similar expressions. The company can give no assurance that any actual or future results or events discussed in these statements will be achieved. Any forward-looking statements represent its views only as of today and should not be relied upon as representing its views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause the company’s actual results to differ materially from the statements contained in this release. Such forward-looking statements include but are not limited to statements relating to the capital to be invested by the water, wastewater and gas distribution divisions of the company. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including the factors discussed in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, which are filed with the Securities and Exchange Commission. For more information regarding risks and uncertainties associated with the company’s business, please refer to the company’s annual, quarterly and other SEC filings. The company is not under any obligation - and expressly disclaims any such obligation - to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

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FAQ

What is the rate increase proposal for Aqua Pennsylvania (WTRG)?

Aqua Pennsylvania has requested an increase in water and wastewater rates, which would raise typical residential water bills from $69.35 to $81.32 and wastewater bills from $55.51 to $73.95.

How much has Aqua Pennsylvania invested in infrastructure improvements (WTRG)?

Aqua Pennsylvania has invested $1.1 billion to upgrade its water and wastewater distribution systems.

When would the new rates take effect for Aqua Pennsylvania (WTRG)?

The new base rates set by the PUC would not be effective until 2022.

What are the reasons for Aqua Pennsylvania's rate increase request (WTRG)?

The request aims to recover costs from substantial infrastructure improvements and enhanced water quality services.

How many customers does Aqua Pennsylvania (WTRG) serve?

Aqua Pennsylvania serves approximately 1.5 million customers across 32 counties in Pennsylvania.