SCRANTON, Pa. — A judge has recommended against a plan to hike rates for Pennsylvania American Water customers in Lackawanna County.
The company filed a request in November for nearly $1 billion in rate hikes, which would increase PAWC’s total annual operating revenues for water service by approximately $199.2 million, or 24.2 percent. For the average residential customer, the proposed rates would increase the monthly water bill by about $17 per month.
An administrative law judge issued the recommendation on Tuesday. The judge recommends a smaller water revenue increase of approximately $92.6 million.
Local lawmakers strenuously objected to the rate hike last year, calling them an "assault on customers."
Public hearings on the rate increase request were held in our area in January.
PAWC said Tuesday's recommendation "fails to provide an appropriate return on Pennsylvania American Water's investments in water and wastewater systems to replace aging infrastructure, provide reliable service, enhance water quality, comply with environmental regulations, and increase fire protection for customers."
The PUC will issue its ruling on the case in July, with new rates to be effective Aug. 7, 2024. The commission will make its own ruling and may adopt, modify, or reject the judge's recommendations.
All public documents related to this rate hike request are posted on the PUC's website.