Company Lists Main Reasons for Rate Increase Request

Jun 15, 2018
SUEZ Water Pennsylvania Inc.
Docket No. R-2018-3000834
 
Statement of Reasons
Proposed Base Rate Increase
 
SUEZ Water Pennsylvania (SWPA) on April 30, 2018 asked the Pennsylvania Public
Utility Commission (PUC) to approve a base rate increase of approximately $6.2 million
to recover costs associated with recent capital investments across its eight-county service
area.
 
SWPA provides water service to approximately 60,400 customers in 8 counties and 39
municipalities throughout Pennsylvania. In total, the system consists of four surface water
treatment plants ranging from 3.0 to 12.0 million gallons per day (“MGD”) capacity; 29
wells, four of which are equipped with treatment other than chlorination and one is under
the influence of surface water and has full treatment; 30 booster stations; and, 36
distribution storage facilities. The distribution system consists of over 800 miles of main,
12,500 valves, and 4,000 fire hydrants.
 
The $6.2 million increase is in addition to the revenues generated by current rates and
charges assessed to the customer as of the date of filing. Ratemaking adjustments have
been made to revenues and expenses for the historic test year, the 12 months ended
December 31, 2017; the future test year, the 12 months ending December 31, 2018 and
the fully projected future test year (Pursuant to Act 11 of 2012), the 12 months ending
December 31, 2019.
 
If the Company’s entire request is approved, the total bill for a residential customer using
an average of 3,500 gallons of water per month would increase from $43.94 to $48.85
or by 11.2 percent. This equates to approximately $4.91 per month or 16 cents per day.
The cost of tap water would remain at about one penny per gallon for a typical family or
most small businesses.
 
The total bill for a commercial customer with a 2” meter using 75,000 gallons of water per
month would increase from $605.23 to $703.36 or by 16.2 percent.
 
The total bill for an industrial customer with a 4” meter using 100,000 gallons of water per
month would increase from $1,000.99 to $1,171.00 or by 17.0 percent.
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