Reading, July 27, 2011 – Testifying today at a Public Utility Commission (PUC) public input hearing, state Senator Judy Schwank (D-Berks) expressed her concerns over the Pennsylvania American Water Company (PAWC) rate increase request.
The PAWC is requesting a 13.3 percent increase in Senator Schwank’s district. She said many of her constituents would struggle to pay such a huge rate hike.
“An average customer in my district, using 49,800 gallons of water annually would see their annual bill increase from $581.40 per year to $658.44 per year,” Schwank said. “That is an increase of $77 per year. While $77 may not seem like a lot, when considered cumulatively with the increases most of us are facing for other necessities of life – gas, electric, insurance premiums, property taxes – this increase is significant.”
Senator Schwank said that this is especially true for seniors, the unemployed and others on fixed incomes.
“Every increase in the bills of this vulnerable population stretches their already strained budgets to the limit,” Schwank said. “This proposed increase in water rates will exacerbate problems for seniors and many others struggling to make ends meet.”
Schwank added that local businesses will also feel the pain of the proposed increase, especially small businesses struggling to stay afloat in today’s difficult economic times.
“Businesses using 23,000 gallons of water per month could see their water bill jump to $242 per month from $207 if this rate increase is granted,” Schwank said. “While this may not force businesses to close, it would put them at competitive disadvantages, cause business owners to reevaluate their existing operations and give pause to new businesses that are considering moving to our area. This, in turn, could have detrimental consequences to Reading’s economic recovery.”
Schwank called on the PUC to carefully review and consider the testimony presented by consumers and experts during the hearing, taking into account the significant impact the requested rate increases would have on all PAWC customers.
“It is important that all arguments – for and against – this proposed rate increase be considered,” Schwank said. “Only then can the commission render a decision that is just, reasonable and fair for all parties involved.”
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