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Pennsylvania American Water Implements Rate Hikes for Infrastructure

Pennsylvania American Water Implements Rate Hikes for Infrastructure

Pennsylvania American Water is rolling out new rate structures this week to fund a $1.2 billion modernization effort. The utility, which provides service to 2.5 million residents, is simultaneously expanding its H2O Help to Others program to assist households struggling with the increased monthly costs.

The rate adjustments, sanctioned by the Pennsylvania Public Utility Commission, target essential upgrades through mid-2027. Planned work includes the replacement of 117 miles of aging water mains and 32 miles of sewer lines, alongside efforts to remove lead service lines and treat emerging contaminants like PFAS. For the typical residential household, these improvements translate to a monthly increase of approximately $3 for water service. Customers on sanitary wastewater systems will face a $14 monthly hike, while those using combined stormwater and wastewater infrastructure will see costs rise by $17.

To mitigate the financial impact, the company is bolstering its assistance initiatives. The enhanced program increases monthly financial support from $25 to $40 and introduces a system for arrearage forgiveness, allowing qualifying customers to wipe out past-due balances over a 24-month period. Pennsylvania American Water President Justin Ladner emphasized that while the investments are vital for long-term system reliability, the utility remains focused on connecting vulnerable customers with these resources. Residents can verify their specific rate zone and eligibility for aid via the company’s online portal.

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