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Citing tax reform savings, Pennsylvania American reducing water, wastewater bills

As water use rises with the hot summer temperatures, some water and wastewater customers in Pennsylvania are getting a break on their utility bills.

Derry Township-based Pennsylvania American Water, the commonwealth’s largest regulated provider of water and wastewater service, today announced it is reducing customer bills because of the federal tax reform passed at the end of last year.

Starting July 1, customers will see a “fed tax adjust surcharge” on their water and wastewater bills. Pennsylvania American Water will see about $47 million annually in tax savings from the federal reform. The company said monthly water bills will drop nearly 7 percent for most customers, while most wastewater customers will pay nearly 8 percent less.

For the water customer using 3,000 gallons per month, the savings will be about $3.61 per month or $43.32 per year. Wastewater customers using 3,000 gallons per month will see savings of about $4.25 per month or $51 per year.

By comparison, the average commercial customer using 22,000 gallons per month will see their water bill drop to $271.99 from $291.80. On wastewater, that same user will see the monthly bill drop to $258.70 from $280.22.

Pennsylvania American said reductions for wastewater customers in Scranton, Dunmore and New Cumberland will be less due to lower rates established for those areas in the company’s most recent rate filing last year.

Customer bills will remain at the reduced levels until Pennsylvania American Water files for and receives approval from the Pennsylvania Public Utility Commission on its next rate hike.

Pennsylvania American Water, a subsidiary of New Jersey-based American Water, serves about 2.4 million people in Pennsylvania. The company has been busy expanding its footprint in recent years through acquisitions of municipal systems.

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