United Water Pennsylvania today filed for rate relief with the Pennsylvania Public Utilities Commission (PUC) requesting a $5.35 per month or 18 cents per day increase in rates for a typical residential customer. The proposed increase, if approved by the PUC, would raise the average residential customer’s annual bill from $396 to $460. United Water last filed for rate relief more than three years ago in 2006. The company provides water service to a population of over 165,000 people throughout 39 communities encompassing portions of eight counties, as follows: Columbia, Cumberland, Dauphin, Luzerne, Perry, Schuylkill, Wyoming and York.
United Water Pennsylvania has the lowest rates among the major investor owned water suppliers regulated by the PUC. “Our staff takes great pride in keeping customer water rates as low as possible,” said John Hollenbach, Vice President & General Manager. “We fully realize that this is a difficult economy right now and our customers are feeling squeezed in many ways. That’s why business efficiency is one of our core values and we instituted a rigorous program to drive productivity, monitor and control costs and improve customer service.”
“The program measures efficiency through key performance indicators and closely controls each major expense, such as power, on a regular basis. We also use competitive bidding of chemicals to keep costs low. Despite these measures, increased general costs, along with prudent capital investment, necessitated the filing of this rate increase proposal.”
Since 2006 the company’s operational costs have also increased for items such as power, chemicals, depreciation and labor costs - totaling more than $2.2 million. The company’s filing includes nearly $35 million in capital improvements to the water system, about $9 million to replace aging infrastructure, including 13 miles of water mains, and roughly $14 million to upgrade water treatment facilities at various locations in the system.
“We’ve made substantial investments during the past three years on behalf of our customers to improve service and maintain water quality,” said Hollenbach. “This rate filing is necessary for us to continue to meet the stricter water quality regulations of the future, and also ensure the continued safety and reliability of our water system."
Customer programs assist those in need
United Water Pennsylvania’s customer assistance program called “UW Cares” provides grants of up to $100 per year for qualifying customers who apply through the Salvation Army, which screens applications. United Water shareholders initially provided significant start-up funding for the program and customers who are able have been invited to contribute to the fund. The company has also launched an aggressive water conservation program in an effort to help customers use water wisely. Both programs can be found on the company’s website at www.unitedwater.com/uwpa.
The company filed for a net increase in revenue of $4.9 million per year, or approximately 16 percent to become effective on November 15, 2009, unless suspended by the PUC for full investigation, which could take up to nine months from the date of the filing. If the entire request is approved, the total monthly bill for each type of customer class would be as follows:
Residential customers using 4,500 gallons of water per month would experience an increase from $33.01 to $38.36, or by 16.2 percent.
Commercial customers using 23,000 gallons of water per month would experience an increase from $157.48 to $183.81, or by 16.7 percent.
Industrial customers using 320,000 gallons of water per month would experience an increase from $1,320.86 to $1,446.51, or by approximately 9.5 percent.
The PUC will examine the proposed rate increase and can prevent existing rates from changing until it investigates and holds hearings on the requested increase. It may also change the amount of the rate increase requested for each customer class. The company must prove that the requested rates are just and reasonable. Customers interested in further information about the proposed rate increase or what actions they may take to challenge the proposal may contact United Water Pennsylvania toll-free at 888-299-8972. They may also contact the PUC toll-free at 800-782-1110.
About United Water
United Water is one of the nation’s leading water and wastewater services providers to over 7 million people in 26 states through the dedication of its 2,600 employees. In addition to owning and operating 20 regulated utilities, United Water operates 240 municipal systems through public-private partnerships and contract agreements, including three of the nation's largest water and wastewater contracts: Indianapolis, IN, Gary, IN and Jersey City, NJ. The company’s affiliate, Utility Service Company, provides water tank asset management services to over 2,000 municipal and industrial clients under long term contracts. Founded in 1869, United Water is a subsidiary of the SUEZ ENVIRONNEMENT.
About Suez Environnement
Natural resources are not infinite. Each day, SUEZ ENVIRONNEMENT and its subsidiaries deal with the challenge to protect resources by providing innovative solutions to industries and to millions of people. SUEZ ENVIRONNEMENT supplies drinking water to 76 million people, provides wastewater treatment services for 44 million people and collects the waste produced by 60 million people. SUEZ ENVIRONNEMENT has 65,400 employees and is present on five continents. It is a world leader exclusively dedicated to water supply and waste removal services. In 2008, SUEZ ENVIRONNEMENT, a subsidiary in which GDF SUEZ has a 35% stake, achieved sales turnover of €12.4 billion ($17.6 billion USD). To find out more visit
www.suezenvironnement.com
.