Rate hikes, refunds approved for York Water customers
Customers of The York Water Co. will be paying more for water, but they also will be getting refunds based on the utility's tax savings under the 2017 tax reform bill.
The Pennsylvania Public Utility Commission unanimously approved last will a joint settlement that will increase annual revenue for York Water by $3.65 million, or just over 7 percent, according to the release.
York Water proposed the rate increase last June. The requested would have added revenue of $6.69 million, or 13 percent, for water services alone, which is almost twice the amount the company got.
Under the terms of the settlement, the average base rates for industrial water customers will increase by approximately 9.7 percent, while the average base rates for residential and commercial water service customers will increase by 7.3 percent.
In addition, York Water will be required to return $2.1 million in federal tax savings to customers in the form of a 4.29 percent credit on their monthly water bills. They will be required to return the money between March 1, 2019 and Feb. 29, 2020.
"We believe this is a fair and reasonable settlement that allows us to recover an approximately $77 million investment in system improvements and infrastructure replacements, and allows us to continue to meet the current and future needs of our customers," York Water Co. President and CEO Jeff Hines said in a news release.
Hines said that the company will be replacing, relining and reinforcing about 4 percent of its water mains. Other work will include the replacement of service lines, meters and hydrants and the construction of an untreated water pumping station at Lake Redman to increase security, reduce costs and provide redundancy in case of emergencies, he said.