York Water Co. asks state regulators to approve rate increase
York Water Co. filed a rate request with the state Public Utility Commission asking for "a $6.4 million increase in annual water revenues and a $288,623 increase in annual wastewater revenues."
Jeff Hines, president and CEO of York Water, said in a company news release that the money would go toward $77 million in capital investments. This is the first general rate increase in five years, the release states.
The company explained the capital investments are necessary to "reinforce, replace and reline aging water mains; replace service lines, meters and hydrants; construct an untreated water pumping station on Lake Redman to increase security, reduce costs and provide redundancy in case of emergencies."
The work also will "increase water quality and operational efficiency through upgrades to facilities and equipment; expansion and improvements of the water and wastewater treatment plants and other facilities to better meet current and upcoming regulations," and replace and upgrade other infrastructure, including York Water’s water-supply dams.
The company began making capital investments "since its 2013 rate filing and will make them through February 2020," according to the company.
“Costs to be recovered in this rate filing include replacement costs of over 40 miles of aging pipeline, about 4 percent of our total pipe, which extends the life of our infrastructure, reduces costs associated with main breaks and leaks and provides improved customer service and reliability,” Hines said in the release.
He continued, “we are also seeking to recover increased costs such as personnel expenses, depreciation, and increase in normal operations and maintenance expenses.”
If the PUC immediately grants the rate increase, the company stated, the rates could be effective Aug. 1. If the request is investigated, which is typically what happens, Hines said, depending on what the PUC approves, rate increases wouldn't happen until early 2019.
“York Water remains one of the most efficient water utilities in the nation, continuing to reduce or eliminate various expenses since its last rate case, including reduction in income taxes from the 2017 Tax Act and tax repair deductions,” Hines stated. “This has helped to offset and delay this proposed increase in rates.”
According to York Water Co., here's how its proposed rate increases would affect customers:
Typical residential water customer: pays an additional $4.30 per month (14 cents per day)
Typical commercial water customer: pays an additional $15.50 per month (52 cents per day)
Typical industrial water customer: pays an additional $125.61 per month ($4.19 per day)
How wastewater customers could be affected:
Asbury Pointe Subdivision: pays an additional $12.50 per month (42 cents per day)
East Prospect and Lower Windsor residential area: pays an additional $12.94 per month (43 cents per day)
East Prospect and Lower Windsor commercial area: pays an additional $16.04 per month (53 cents per day)
West York Borough residential: pays an additional $6.54 per month per dwelling unit (22 cents per day)
West York Borough commercial and industrial: pays an additional $8.09 per month per dwelling unit (27 cents per day)