HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted to investigate a proposed $58,062,930 (12.5 percent) annual rate increase for Pennsylvania American Water Co.

The Commission voted  5-0 to investigate the proposed increase.  It is suspended for up to seven months until January 23, 2010, and will be assigned to the Office of Administrative Law Judge for public hearings and a recommended decision or settlement.  More information on the ratemaking process is available on the Commission’s website.

Under the company’s proposal, the average yearly bill based on annual usage of 50,400 gallons for residential customers would change as follows, for local service areas:

• $403.20 to $586.80 (45.5 percent) in Lehman Pike and Winona Lakes;
• $458.40 to $586.80 (28.0 percent) in Blue Mountain Lake;
• $414.60 to $586.60 (41.5 percent) in Pine Ridge;
• $275.52 to $432.84 (57.1 percent) in Pocono Farms;

The company provides water service to approximately 635,000 customers in portions of several counties, across the state, including Monroe, Pike, and Wayne.

According to the company’s filing, the proposed increase is necessary to obtain additional funds needed for the company’s substantial investment in new utility plants and for the increase in production costs and post employment benefits.