In November 2023, Pennsylvania American Water, the state’s largest investor-owned utility serving 2.3 million people, filed for rate adjustment with the Pennsylvania Public Utility Commission and notified consumers of a pending price increase. In a press release, the company shared its plans to invest $1 billion in its water and wastewater systems, “to replace aging infrastructure, provide reliable service, enhance water quality, comply with environmental regulations and increase fire protection.”[1]

For average residential customers, this will result in a 25% price increase, adding approximately $17 per month for water and $4 per month for combined sewer service, although the cost of sanitary sewer service would decrease by approximately $5 per month.[2] Commercial businesses would see an even larger increase of nearly 32%.

To address concerns regarding affordability, the company plans to expand its monthly income-based bill discount program adding 55,000 new customers.[3]

The Pennsylvania Public Utility Commission must approve the requested increase. According to the press release, if approved, the rates would go into effect August 2024.

[1] “Pennsylvania American Water Files Rate Request Driven by $1 Billion in Investment.” Amwater.Com, 8 Nov. 2023, www.amwater.com/press-room/press-releases/pennsylvania/pennsylvania-american-water-files-rate-request-driven-by-1-billion-in-investment.

[2] Steininger, Melissa. “Pennsylvania American Water Customers May See Higher Bills - WNEP.” Wnep.Com, 16 Nov. 2023, www.wnep.com/article/news/local/lackawanna-county/pennsylvania-american-water-customers-may-see-rate-hike-bills-increase-public-utility-commission/523-1d7bbd19-311b-41f6-b093-dade14b47391.

[3] “Pennsylvania American Water Files Rate Request Driven by $1 Billion in Investment.” Amwater.Com, 8 Nov. 2023, www.amwater.com/press-room/press-releases/pennsylvania/pennsylvania-american-water-files-rate-request-driven-by-1-billion-in-investment.