The Pennsylvania Public Utility Commission on Thursday authorized an annual revenue increase of $74.9 million for Pennsylvania American Water, approving smaller hikes than the company sought while citing the need to fund infrastructure upgrades across the state.
What the order covers
The PUC granted a 4.75% increase for the company's water operations and a 14.17% increase for its wastewater operations. Those figures fall short of Pennsylvania American Water’s original request — which would have raised total revenue by roughly $159.5 million — but will support replacement of aging pipes, expansion of treatment for persistent contaminants often called “forever chemicals,” and ongoing work to remove lead service lines.
"The record demonstrates that Pennsylvania American Water has provided meaningful assistance to troubled water and wastewater systems through acquisitions, receiverships and infrastructure improvements. These efforts have helped deliver safe, reliable service to customers and represent a public benefit that warrants recognition as part of the commission’s consideration of management performance," PUC chairman Stephen M. DeFrank said in announcing the decision.
Company officials have not yet released details on how the approved increases will translate to monthly bills. Pennsylvania American Water said it will provide customer-impact information after it receives the PUC’s formal order and completes an internal evaluation.
Local projects and expected benefits
In Berks County, investments funded under the order will continue improvements to the Exeter wastewater system, projects the company says will protect Heisters Creek, the Schuylkill River and nearby waterways. Planned work includes construction of an Exeter equalization tank and a new influent pump station intended to better handle wet-weather flows and reduce system overflows. Once finished, those upgrades are projected to keep more than 7 million gallons of wastewater out of local waterways each year.
- Statewide reach: Pennsylvania American Water serves more than 2.5 million people across the state.
- Main priorities: replacing aging infrastructure, treating PFAS/"forever chemicals," and eliminating lead service lines.
- Local impact: Exeter projects to reduce wastewater overflows and improve river water quality.
| Measure | Approved | Requested |
|---|---|---|
| Water operations increase | 4.75% | 15% |
| Wastewater operations increase | 14.17% | 7.7% |
| Total annual revenue change | $74.9 million (approved) | ~$159.5 million (if fully granted) |
For local officials and environmental advocates, the PUC decision signals continued state support for long-term upgrades to water and wastewater systems that have struggled under aging infrastructure and regulatory pressures. The Exeter projects are an example of how rate adjustments can be used to finance capital work intended to reduce pollution and improve system reliability.
Customers should expect further communication from Pennsylvania American Water after the company reviews the PUC’s formal order. That notice will detail how the revenue increases are applied and what changes, if any, will appear on monthly bills.
Statewide, the decision underscores the balancing act regulators face between limiting customer bill impacts and ensuring utilities have the funds to address public-health and environmental priorities.
