The Herald, Sharon, Pa.

Published Tuesday, May 9, 2000

SHENANGO VALLEY

Local water rates are rising
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PUC OKs Consumers’ request
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AVERAGE BILL WILL GO UP 29 PERCENT, COMPANY SAYS

By Kristen Garrett
Herald Staff Writer

Shenango Valley residents will be seeing a large rate increase when their quarterly bill arrives from Consumers Pennsylvania Water Company.

The Pennsylvania Public Utilities Commission approved a settlement that will allow Philadelphia Suburban Water Company and Consumers — which serve a total of 332,397 residential customers — to increase their rates, a press release from the PUC said. Philadelphia Suburban and Consumers merged last year.

For the average Shenango Valley resident quarterly bills will increase 29 percent or from $56.62 quarterly to $73.05, according to Ken Baumann, vice-president and general manager of Consumers Shenango Valley Division. This is a total of $65.72 a year. The new rates went into effect April 28, he said.

The last increase customers saw was in 1997 when rates went up 23 percent, Baumann said. This takes the total increase over the past three years to 52 percent.

“When you compare the costs for water ... this is kind of middle of the pack for water utilities in the state,” Baumann said. Consumers’ rates aren’t the lowest but they’re definitely not the highest, he said.

The reason for the increase is “totally due to the treatment plant project,” Baumann said. The company is completing a $35 million water treatment plant on North Water Avenue in Sharon. Originally Consumers planned a 75 to 80 percent increase, but after Consumers merged with Philadelphia Suburban Water Company, the financial load was lessened, Baumann said.

Under the PUC-approved settlement, an average residential bill is based upon the use of 4,700 gallons of water per month, the release said. The companies are allowed to charge the new rates after one day’s notice, and they are not allowed to ask for another general rate increase until April 29, 2001.

Baumann said it’s difficult now to say if Consumers will need another increase in a year. He said he feels safe in saying there will be no rate increases of this magnitude in the future.

Baumann said Consumers is always willing to work with customers who are having trouble paying their bill by setting up some kind of a payment schedule. Sometime in the next two months the company is starting a program called Helping Hands through which the company will provide plumbing and water-saving tips to customers who are financially eligible.

Sharon Mayor Robert T. Price said he feels bad for residents who “simply can’t afford to pay.” Price, who has no control over water rates, said he realizes it’s a steep increase and he has contacted Housing and Urban Development to see if it would be possible to use federal money to help residents who are financially strapped. Price said he doesn’t have an immediate answer.

The PUC held public input meetings across the state, including one in Hermitage Feb. 23, before a decision was made. Only 23 formal complaints were filed against the rate increase.

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