Pennsylvania Suburban Water Company Files Rate Request.

Business Editors

BRYN MAWR, Pa.--(BUSINESS WIRE)--Nov. 14, 2003

Pennsylvania Suburban Water Company (PSW) filed an application with the Pennsylvania Public Utility Commission (PUC) today requesting a $2.93 a month (10 cents a day) increase in rates for a typical residential customer. Although the request--which would bring a typical monthly residential bill to $37.02--asks that the new rates become effective January 14, 2004, the PUC typically suspends such requests for up to nine months (potentially August 14, 2004) to permit a complete investigation and analysis.

PSW Vice President Kathy Pape said that the company has invested a significant amount of money in capital improvements over the last couple years. "Since our last rate request, we have invested approximately $192 million throughout the system to improve our distribution system and water treatment facilities, which in turn improves system reliability and water quality. With more than 380,000 customers throughout Pennsylvania, that's an average investment of about $500 per customer--more than most residential customers pay for a full year of water." Pape added that the company's investment in capital is consistent with U.S. Environmental Protection Agency's projection that more than $150 billion will be needed nationally over the next 20 years to improve the nation's water and wastewater utility infrastructure.

If the PUC were to grant the entire request, a typical PSW residential customer would still be able to have a day's worth of water (approximately 150 gallons) for approximately $1.25--less than the cost of one gallon of bottled water. Pape noted that, "Even after the increase, customers will still be able to have water delivered directly to their taps for less than a penny per gallon."

The total annual revenue request for PSW, which serves a total of 1.3 million residents throughout the state, is $25.3 million.