PUC dramatically cuts rate changes for Pennsylvania American Water

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WILKES-BARRE — The Pennsylvania Public Utility Commission this week moved to dramatically reduce the overall revenue increase sought by Pennsylvania American Water Company (PAWC) — cutting it by more than 50% of what PAWC had initially requested and enhancing essential customer assistance programs.

The decision came following a lengthy investigation and an extensive series of public input hearings across the state.

The Commission voted 4-1 to approve a motion by Chairman Stephen M. DeFrank to scale back the rate changes for water and wastewater service and take other steps to safeguard consumers and enhance affordability programs.

The motion also launches a PUC investigation into service quality issues raised at public input hearings.

The revised rate changes provide for a revenue increase of approximately $99.3 million per year, compared to PAWC’s initial request of nearly $202.4 million — which is a 9.99% increase, compared to PAWC’s proposed 20% increase.

“Today, I believe that the Commission struck a balance by approving a significantly lower increase than requested while expanding customer benefits and access to the company’s various consumer assistance programs,” said Chairman DeFrank. “Additionally, the Commission’s action today enables cumulative quality of service issues raised in this proceeding to be properly addressed.”

The motion underscores the Commission’s commitment to listening to consumer concerns related to utility service.

The motion launches an investigation by the PUC’s Law Bureau, working in conjunction with the Bureau of Technical Utility Services (TUS), concerning the large number of water quality concerns raised by consumers who testified at PUC public input hearings as part of this rate case — especially involving consumers in the Scranton area and other communities in PAWC’s northeast service territory.

The investigation will analyze the root cause of the complaints about dirty, discolored or bad smelling water, and make recommendations for future actions by PAWC to correct these issues. Additionally, the finding of the TUS investigation into water quality issues may be referred to the Pennsylvania Department of Environmental Protection and/or the PUC’s independent Bureau of Investigation and Enforcement, if those actions are necessary.

The motion also rejects a proposal from PAWC to include an “adder” that would further boost the company’s returns — intended to reward PAWC’s management performance. In rejecting this extra financial reward for the company, the motion notes that these types of actions are intended for situations that show extraordinary service — but the substantial public input about quality-of-service issues make it inappropriate to award an adder in this case.

Today’s motion calls on PAWC to target the donation of an additional $1 million by shareholders to the utility’s customer Hardship Fund – more than doubling the size of that fund, which currently receives a contribution of $750,000 per year. This donation would not be passed through as an additional charge to PAWC’s customers.

Additionally, PAWC will expand income eligibility guidelines and other enhancements to the Hardship Fund grant program, so more consumers can benefit from that program.

The utility will also increase discounts and expand income eligibility guidelines for the “H2O” bill discount program to address affordability concerns and assist more income-qualified customers.

In addition, the Commission rejected several proposals included in the PAWC rate case which had been opposed by consumer advocates and other concerned parties, determining that they were not in the public interest. These include:

Rejection of PAWC’s requests for rate recovery related to Butler Area Sewer Authority, Farmington Township (water and wastewater), Audubon Water Company, and Sadsbury Township Municipal Authority.

Rejection of a “winter average billing” proposal for wastewater services which might have a disproportionate adverse impact on low-income customers while higher income customers would likely benefit from this proposal.

Rejection of PAWC’s proposed Revenue Decoupling Mechanism, noting among other things that it appears that the proposed mechanism would hinder customer conservation efforts and could cause customers who take measures to reduce their water consumption to share some of the bill savings with PAWC.

8PAWC serves 681,707 water and 97,585 wastewater customers in 37 counties and is the largest regulated water and wastewater service provider in Pennsylvania.

After Strong Q2, Bresnahan has $1.2M in campaign war chest

Rob Bresnahan, candidate for Congress in Pennsylvania’s 8th District, encompassing Northeastern Pennsylvania, announced today that he raised $728,000 in the second quarter, one of the highest totals for a Republican challenger in the country.

This brings Bresnahan’s cash on hand to over $1.2 million.

“Rob Bresnahan’s massive fundraising quarter is the latest example of our growing momentum as the people of Northeastern Pennsylvania demand fresh leadership in Washington,” said Campaign Manager Derek Rockey.

As of July 2, 2024, 60% of Bresnahan’s donations were from within Pennsylvania. Conversely, only 26% of Democratic incumbent U.S. Rep. Matt Cartwright’s donations came from in-state sources.

The non-partisan Cook Political Report rates PA-08 as a toss-up.

Sens. Casey, Warnock introduce bill to lower prescription costs for millions of Americans

U.S. Senators Bob Casey, D-Scranton, Chairman of the U.S. Senate Special Committee on Aging, and Reverend Raphael Warnock, D-Georgia, introduced the Capping Prescription Costs Act, which would lower prescription drug costs for millions of Americans.

The bill would place annual caps on out-of-pocket costs for prescription drugs­­ — $2,000 for individuals and $4,000 for families. Casey’s bill builds on the success of the Inflation Reduction Act, which capped prescription drug cost-sharing for Medicare Part D beneficiaries, extending the savings to the commercial health care market.

“Prescription drug costs are like a bag of rocks tied around the necks of millions of Americans, weighing them down every single day,” said Chairman Casey. “My new bill will place a cap on out-of-pocket prescription drug costs for Americans with private insurance, building on the success of the Inflation Reduction Act and lightening the load that has been weighing down Americans for far too long.”

“Long before I came to the U.S. Senate, I was fighting to make health care more affordable and accessible. Struggling families shouldn’t have to skip refills, ration prescriptions, and risk their health just to afford the medications they need to survive,” said Senator Warnock. “In a nation as rich and powerful as the United States that should never be the case, so I’m proud to join Sen. Casey to introduce the Capping Prescription Costs Act that will help families afford the prescriptions they need to live healthy, full, independent lives.”

Over 60% of American adults take at least one prescription drug, with 25% of adults taking four or more. Yet Americans often pay more for the same prescription drugs than people in other countries, and due to the cost burden, American patients often cannot afford their medications as prescribed.

This results in patients skipping doses, cutting doses in half, or taking over-the-counter medications instead of their prescriptions. One study found that 31% of patients did not take their medications as prescribed due to cost.

The law also will limit Medicare beneficiaries’ out-of-pocket costs at $2,000 per year beginning in 2025.

Casey’s new bill will extend that out-of-pocket cost cap to the commercial health care market. The new $2,000 cap on cost-sharing for individuals and $4,000 for families will apply to all of the 173 million Americans who have private health insurance.

Meuser supports resolution to ‘protect’ women’s sports

U,S, Rep. Dan Meuser, R-Dallas, this week voted in favor of H.J.Res. 165, which aims to overturn the Biden Administration’s unacceptable changes to Title IX.

Title IX has been instrumental in ensuring women and girls have equal opportunities to thrive in education and athletics for over half a century.

Meuser said the Biden Administration’s rule expands the definition of “sex” to include “gender identity,” meaning biological males could enter women’s and girls’ private spaces, including bathrooms and locker rooms, and compete in women’s sports.

H.J. Res. 165 would block the Biden Administration’s Title IX rewrite, ensuring women and girls feel safe in school and have equal access to opportunities in the classroom and on the athletic field.

“Allowing boys to compete in girls’ sports jeopardizes both the fairness and safety of female athletics,” Meuser said. ” The Biden Administration’s ideology of appeasement prioritizes radical activists over female athletes. It neglects their rights and instead leaves them vulnerable and sidelined, rather than providing the necessary support and protections for their success. Women’s and girls’ right to participate fully and fairly in sports should never be compromised, which is why I supported H.J.Res. 165.”

H.J.Res. 165 passed the House by a vote of 210-205.