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The settlement will raise the average residential water bill by approximately $3 per month
Jeffrey R. Hines, president and CEO of The York Water Co. announced the Pennsylvania Public Utility Commission (PPUC) approved a settlement at its Jan. 9, 2014 meeting, allowing an increase in base rates for water and wastewater customers of The York Water Co. The settled rates provide for cost recovery for York Water, while maintaining affordability to customers.
"We believe this is a fair and reasonable settlement that allows us to recover approximately $48 million investment in system improvements and infrastructure replacements, and allows us to continue to meet the current and future needs of our customers,” Hines said.
As examples of included investments, Hines cited "investments to reinforce, replace and reline about 3% of the company's water mains in order to reduce costs associated with main breaks and leaks and to provide improved customer service and reliability." Hines further highlighted "investments to provide increased protection in case of emergencies; increased water quality and operational efficiency through upgrades to facilities and equipment; improved water and wastewater treatment plants and other facilities to better meet current and upcoming regulations; and upgrades to other infrastructure including York's water supply dams."
The settlement approved by the PPUC affects approximately 64,000 water customers throughout York and Adams Counties, Pa., and 230 wastewater customers in the Asbury Pointe Subdivision of York County, Pa.
It is estimated that the settlement will increase the average residential water bill for customers using 4,257 gal from $39.18 per month to $42.26 per month, or just over $3 per month. Hines commented that "even with the increase, the cost of water service for our average customer is about one penny per gallon." The wastewater bill for York Water's customers in the Asbury Pointe Subdivision will increase from $40 per month to $50 per month.
The settlement allows for an increase of approximately $5 million in annual revenue. The Company filed the rate request with the PPUC on May 29, 2013. The new rates are effective on Feb. 28, 2014.