LACKAWANNA COUNTY, Pa. — On Thursday, the state reduced Pennsylvania American Water's large rate hike request and made several major changes to the proposal.
Pennsylvania American Water proposed a rate hike in November of 2023 for nearly $1 billion in increases, 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.
The Pennsylvania Public Utility Commission voted 4-1 on Thursday to scale back the proposal, including:
- Cutting the increase by more than 50%.
- Launching an investigation into the water quality complaints voiced by many Scranton-area residents during the public input hearings.
- Eliminating an item in the proposal that would have rewarded PAWC for management performance.
- Calling on PAWC to increase company contributions to the utility's Hardship Fund by an additional $1 million.
The revised rate changes provide for a revenue increase of approximately $99.3 million per year, compared to PAWC's initial request of nearly $202.4 million—a 9.99% increase compared to PAWC's proposed 20% increase.
The Commission also rejected several proposals included in the PAWC rate case, which had been opposed by consumer advocates and other concerned parties, determining that they were not in the public interest.
Local lawmakers vigorously opposed the rate hike, calling it "an assault on customers."
Public hearings on the rate increase were held throughout the area in January, as Lackawanna County officials called on the PUC to deny the proposal.
In May, an administrative law judge recommended a smaller water revenue increase of approximately $92.6 million.
The new water rates are currently scheduled to go into effect on August 7.
All public documents related to this rate hike request are posted on the PUC's website.