PUC’S WATER RATE DECISION REQUIRES CHANGES FOR PAWC

The Public Utility Commission on Thursday approved a rate increase for customers of Pennsylvania American Water Company, but it’s less than half of what the utility asked for, and it comes with new requirements for better customer service and consumer protections.

By a 4-1 vote, the commission approved an overall rate increase of about 4.75 percent for water service and about 14.17 percent for wastewater service.  For residential customers who use water service only, the average bill could rise from three to thirteen dollars per month.  For those who use combined water and wastewater services, the increase would be approximately twenty dollars per month.

It’s far less than the 15 percent that Pennsylvania American requested for water but almost twice what the company had wanted for wastewater.

The new rates take effect on August 13^th.

The PUC also ordered Pennsylvania American to modify its Bill Discount Program, its Arrearage Management Program, and other programs, along with adjustments to the way it handles customer disputes and complaints.

The new requirements:

Customer Service Improvements & Consumer Protections

In addition to resolving revenue requirements, the Commission’s Order includes several measures related to customer service and consumer protections.

• Bill Discount Program: No later than Nov. 11, 2026, PAWC will implement and file an associated report with the PUC’s Bureau of Consumer Services (BCS) concerning modifications to its Bill Discount Program, including:

1. • Adoption of an internal process to identify its low-income customers by initiating a screening process at the time of customer enrollment;
   • Expansion of its Customer Assistance Program enrollment within its identified low-income customer population by directing customers to the program before they enter into a Deferred Payment Arrangement or are disconnected for nonpayment; and
   • Adoption of a procedure, developed in collaboration with its low-income advisory group, under which it will offer the identified low-income customer the opportunity to apply for the Company’s Bill Discount Program and Arrearage Management Program.

• Arrearage Management Program: No later than Nov. 11, 2026, PAWC will implement, and file an associated report with BCS concerning modifications to its Arrearage Management Program, including:

1. • Allowing customers to earn a monthly arrearage forgiveness credit for each complete payment the customer makes, regardless of timeliness, and apply retroactive credits to the household once it pays its in-program balance in full;
   • Expanding the monthly credit from $25 to $40 for a timely payment or for a cured missed or late payment; and
   • Providing complete arrearage forgiveness over a 24-month period.

• H2O Help to Others Program: No later than Nov. 11, 2026, PAWC will implement and file an associated report with BCS concerning the specific H2O Help to Others Program screening, outreach, and enrollment procedures set forth in the Commission’s Order.
• Customer Call Center Compliance Audit: PAWC will conduct an audit of its two third-party call center contractors handling collection calls to ensure customer call center compliance with PUC regulations, make the results available to stakeholders, and submit such results as evidence in the Company’s next base rate case.
• Customer Disputes and Complaints: PAWC, working with an independent third party, will undertake a root cause analysis of customer disputes and informal and formal complaints. The analysis will help to identify complaint trends, underlying causes, and reforms or other steps undertaken to respond to these findings, sharing its plan with stakeholders prior to undertaking such analysis, sharing its results with stakeholders, and including these findings in its next base rate case.

• Residential Customer Bills: Within 90 days of the entry of this Order, PAWC will include language in its residential customer bills that clearly explains that American Water Resources is unaffiliated with Pennsylvania-American Water Company.  Pennsylvania-American Water Company will notify the Commission once this directive has been completed.
• A Solution Provider for Troubled Water and Wastewater Systems: Today’s motion acknowledges PAWC’s ongoing work as a receiver and solution provider for troubled water and wastewater systems across the Commonwealth, including acquiring fourteen troubled systems over the last ten years in order to ensure efficient, safe and reasonable service.

A Final Opinion and Order is currently being drafted.  Full details of all the various changes initiated by the Commission will be available in the coming days when the Final Opinion and Order is posted to the PUC public dockets for these proceedings.