Pennsylvania-American Water Company Files for Increased Rates; The Company Has Over Two Million Reasons Why the Increase is Needed

Apr 27, 2001, 01:00 ET from Pennsylvania-American Water Company

    HERSHEY, Pa., April 27 /PRNewswire/ -- Pennsylvania-American Water Company
 filed a request with the Pennsylvania Public Utility Commission (PUC) to
 increase rates for water service.
     Since December of 1999 through the end of this year, Pennsylvania-American
 will have invested nearly $200 million to replace and upgrade its facilities
 and infrastructure statewide in order to provide the more than 2 million
 people it serves with high quality, reliable water service.  While customers
 are already enjoying the benefits of many of these improvements, only a
 portion of the costs to finance them are covered in current water service
 charges.
     "Pennsylvania-American is committed to making the necessary investments in
 our water treatment facilities and distribution systems to replace aging
 infrastructure and continuing to meet the needs of our customers," said Robert
 M. Ross, president and CEO.  "We are the only utility that provides a service
 that is ultimately consumed by men, women and children, so when I've been
 asked why investments are necessary, I respond, `I have over 2 million
 reasons, and if you're one of our customers, you're one of them.'"
     Pennsylvania-American is regulated by the PUC, and rates are established
 based upon the actual cost of providing service.  As part of the rate filing
 today, Pennsylvania-American submitted to the PUC a current cost of service
 study, and outlined its capital expenditures and cost of doing business.
     The company requested a $38.7 million, or 12.4 percent, rate increase for
 water service.  The average residential customer's bill would increase by
 $4.06 a month, or about 13 cents a day.  For a commercial customer that
 currently pays $124.96 a month for service or an industrial customer that pays
 $2,250.08, the proposed filing would increase their monthly bill by $18.08 and
 $273.85, respectively.
     Since the PUC needs ample time to review the company's request, these
 rates most likely will not go into effect until January 2002.  The previous
 rate adjustment became effective in December of 1999.
     "With the increase, Pennsylvania-American's water service is still an
 exceptional value for the money," emphasized Ross.  "A gallon of Pennsylvania-
 American tap water will cost less than a penny a gallon.  Compare that to the
 cost of a gallon of milk ... a gallon of orange juice ... or a two-liter
 bottle of soda ... and remember, we deliver it directly to your home or
 business."
     As part of the filing, the company proposes to enhance its program for
 customers who are financially-troubled.  Through the company's H2O-Help to
 Others Program, Pennsylvania-American provides a 20 percent discount on the
 service fee for customers who qualify.  To currently participate in the
 program, a customer's income must fall within 125 percent of the federal
 poverty level.  Pennsylvania-American proposes to increase the criteria to
 150 percent of the federal poverty level, thereby expanding the number of
 customers eligible to qualify for the program.  Pennsylvania-American is the
 only water company in the state that offers this type of program.
     Each customer will receive information in the mail explaining the filing.
 Customers who have additional questions can contact Pennsylvania-American's
 customer call centers toll-free at the following numbers: Western PA
 (Allegheny, Armstrong, Beaver, Butler, Clarion, Fayette, Indiana, Jefferson,
 Lawrence, McKean, Warren and Washington Counties) at 800-474-7292;
 Eastern/Northeastern PA (Bucks, Centre, Chester, Clearfield, Columbia,
 Lackawanna, Lancaster, Luzerne, Monroe, Montgomery, Northampton,
 Northumberland, Pike, Schuylkill, Susquehanna, Union and Wayne Counties) at
 800-565-7292; and Central PA (Cumberland, Dauphin, Lebanon and York Counties)
 at 800-717-7292.
     The increase will not affect the rates of customers in 15 municipalities
 served by the company's recently acquired Coatesville system.
 
     Pennsylvania-American Water Company, a subsidiary of American Water Works
 Company (NYSE:   AWK), is the largest regulated water company in the United
 States.  The Company owns and operates 35 surface water filtration plants and
 two wastewater treatment facilities.  Close to 8,000 miles of water
 distribution lines deliver high quality water to more than 2 million
 Pennsylvanians.  American Water Works Company, Inc. (NYSE:   AWK), located in
 Voorhees, NJ, is the largest investor-owned, U.S.-based water service
 enterprise.  The Company's utility subsidiaries and affiliates now serve over
 10 million people in over 1,000 communities in 23 states.
 
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SOURCE Pennsylvania-American Water Company
    HERSHEY, Pa., April 27 /PRNewswire/ -- Pennsylvania-American Water Company
 filed a request with the Pennsylvania Public Utility Commission (PUC) to
 increase rates for water service.
     Since December of 1999 through the end of this year, Pennsylvania-American
 will have invested nearly $200 million to replace and upgrade its facilities
 and infrastructure statewide in order to provide the more than 2 million
 people it serves with high quality, reliable water service.  While customers
 are already enjoying the benefits of many of these improvements, only a
 portion of the costs to finance them are covered in current water service
 charges.
     "Pennsylvania-American is committed to making the necessary investments in
 our water treatment facilities and distribution systems to replace aging
 infrastructure and continuing to meet the needs of our customers," said Robert
 M. Ross, president and CEO.  "We are the only utility that provides a service
 that is ultimately consumed by men, women and children, so when I've been
 asked why investments are necessary, I respond, `I have over 2 million
 reasons, and if you're one of our customers, you're one of them.'"
     Pennsylvania-American is regulated by the PUC, and rates are established
 based upon the actual cost of providing service.  As part of the rate filing
 today, Pennsylvania-American submitted to the PUC a current cost of service
 study, and outlined its capital expenditures and cost of doing business.
     The company requested a $38.7 million, or 12.4 percent, rate increase for
 water service.  The average residential customer's bill would increase by
 $4.06 a month, or about 13 cents a day.  For a commercial customer that
 currently pays $124.96 a month for service or an industrial customer that pays
 $2,250.08, the proposed filing would increase their monthly bill by $18.08 and
 $273.85, respectively.
     Since the PUC needs ample time to review the company's request, these
 rates most likely will not go into effect until January 2002.  The previous
 rate adjustment became effective in December of 1999.
     "With the increase, Pennsylvania-American's water service is still an
 exceptional value for the money," emphasized Ross.  "A gallon of Pennsylvania-
 American tap water will cost less than a penny a gallon.  Compare that to the
 cost of a gallon of milk ... a gallon of orange juice ... or a two-liter
 bottle of soda ... and remember, we deliver it directly to your home or
 business."
     As part of the filing, the company proposes to enhance its program for
 customers who are financially-troubled.  Through the company's H2O-Help to
 Others Program, Pennsylvania-American provides a 20 percent discount on the
 service fee for customers who qualify.  To currently participate in the
 program, a customer's income must fall within 125 percent of the federal
 poverty level.  Pennsylvania-American proposes to increase the criteria to
 150 percent of the federal poverty level, thereby expanding the number of
 customers eligible to qualify for the program.  Pennsylvania-American is the
 only water company in the state that offers this type of program.
     Each customer will receive information in the mail explaining the filing.
 Customers who have additional questions can contact Pennsylvania-American's
 customer call centers toll-free at the following numbers: Western PA
 (Allegheny, Armstrong, Beaver, Butler, Clarion, Fayette, Indiana, Jefferson,
 Lawrence, McKean, Warren and Washington Counties) at 800-474-7292;
 Eastern/Northeastern PA (Bucks, Centre, Chester, Clearfield, Columbia,
 Lackawanna, Lancaster, Luzerne, Monroe, Montgomery, Northampton,
 Northumberland, Pike, Schuylkill, Susquehanna, Union and Wayne Counties) at
 800-565-7292; and Central PA (Cumberland, Dauphin, Lebanon and York Counties)
 at 800-717-7292.
     The increase will not affect the rates of customers in 15 municipalities
 served by the company's recently acquired Coatesville system.
 
     Pennsylvania-American Water Company, a subsidiary of American Water Works
 Company (NYSE:   AWK), is the largest regulated water company in the United
 States.  The Company owns and operates 35 surface water filtration plants and
 two wastewater treatment facilities.  Close to 8,000 miles of water
 distribution lines deliver high quality water to more than 2 million
 Pennsylvanians.  American Water Works Company, Inc. (NYSE:   AWK), located in
 Voorhees, NJ, is the largest investor-owned, U.S.-based water service
 enterprise.  The Company's utility subsidiaries and affiliates now serve over
 10 million people in over 1,000 communities in 23 states.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X00112388
 
 SOURCE  Pennsylvania-American Water Company