Water to remain below 1.5 cents per gallon
BRYN MAWR, Pa.--(BUSINESS WIRE)--
Aqua Pennsylvania, Inc. (Aqua) filed an application with the
Pennsylvania Public Utility Commission (PUC) today requesting a $5.08 a
month (17 cents a day) increase in rates for a typical residential
customer. The request—which would bring a typical monthly residential
bill to $57.72—asks that the new rates become effective January 18,
2012, however, the PUC has the ability to suspend such requests for up
to nine months (August 2012) to permit a complete investigation and
analysis of Aqua's proposal.
Aqua President Karl Kyriss said the primary reason for the rate request
is the approximately $450 million that the company has invested in
infrastructure including upgrades to its distribution and treatment
systems to improve drinking water quality and service reliability since
its last rate request in 2009. "These improvements include the
replacement and rehabilitation of more than 334 miles of aging water
main, as well as valves, service lines and more than 1,000 fire hydrants
throughout our 5,600-mile distribution system," said Kyriss. "The new
mains often increase water flow, which coupled with new hydrants,
enhances fire protection.
A significant portion of the capital has been dedicated to upgrading and
rehabilitating treatment plants and wells, including the installation of
state-of-the-art equipment to meet new more stringent environmental
water quality requirements. "For maximum reliability, we have upgraded
pumping stations, water storage tanks and standby electrical systems,
and are proud to say no customers were inconvenienced without water
service as a result of recent hurricanes and storms," said Kyriss.
"Approximately 80 percent of this rate request is driven by Aqua's
capital investment to upgrade and rehabilitate its drinking water
systems across the state," he said. "We're proud to have been able to
keep the increase in expenses since the last rate request in 2009 to an
annual average of two-and-a-half percent per year."
With more than 400,000 customers throughout Pennsylvania, the company
said its capital spending since the last rate request amounts to an
average investment of about $1,100 per customer.
If the PUC were to grant the entire request, Kyriss said, "The typical
Aqua residential customer would still be able to have a day's worth of
water (approximately 130 gallons) for approximately $1.90— or about
one-and-a-half cents per gallon for quality water delivered directly to
the customer's home."
According to the EPA, over the next 20 years, the nation's water systems
need to invest about $335 billion for pipes, tanks, valves and treatment
plants. Kyriss said Aqua has taken a proactive approach to this
nationwide problem by systematically replacing a small percentage of its
distribution system annually. The company also maintains and upgrades
its treatment plants and other facilities on a regular basis. "As a
result of our proactive approach to infrastructure investment, Aqua is
not facing the deferred future costs that currently affect many of our
nation's water systems," said Kyriss.
The requested increased in annual revenue for Aqua, which serves nearly
1.4 million people throughout the state, is $38.6 million.
WTRF
Aqua Pennsylvania, Inc.
Donna Alston
Manager, Communications
610-645-1095
dpalston@aquaamerica.com
or
Gretchen
Toner
Senior Communications Specialist
610-645-1175
gmtoner@aquaamerica.com
Source: Aqua Pennsylvania, Inc.
News Provided by Acquire Media
