Residents and lawmakers gathered in Scranton to oppose a proposed hike in residential water rates and changes to wastewater rates.
Many objecting voices outweighed the notes of support for Pennsylvania American Water Company (PAWC) at Tuesday’s hearings at the Scranton Cultural Center. By early February, the state Public Utility Commission will have hosted hearings in Allegheny, Berks and Dauphin counties, with telephone hearings also scheduled for Feb. 5 and Feb. 7.
PAWC is seeking a rate increase of 25%, or $17 on average, for most of its residential water customers, with a varied wastewater rate change to pay for $1 billion in infrastructure upgrades and investments. In a statement, the utility company said the price of wastewater service could decrease 4.8% or rise 121% depending on customer location or “rate zone.” The utility commission must rule on the request by Aug. 7.
Most speakers focused on PAWC’s recent rate hikes approved in January 2023 and the growing cost of at-home water. Those who spoke in favor of PAWC did not comment on the proposed rate changes, but instead remarked on the company’s efforts in business development and land conservation.
In January 2023, Pa. American Water said most customers saw an average of $9 more on their water bills, but about $30 more on wastewater bills.
“We aren’t your banks, we aren’t your loan officers,” said Olivia Jackson, of Dunmore, urging PAWC to set aside profits for infrastructure repairs instead of asking customers to foot the bill.
Retired Dunmore resident Larry Milliken said the utility commission needs to pay attention to profits from water and wastewater services to ensure PAWC isn’t adjusting rates from one division to fund the other. In his testimony, Milliken called the company “a regulated monopoly” and worried executives cared more for its shareholders than its customers.
Following the 2016 sale of the Scranton Sewer Authority to PAWC for $195 million, residents said they’ve seen a spike in wastewater prices. Jahan Tabatabaie, a real estate broker, testified on behalf of his family and rental clients.
“I can provide, as many others have also done, bills that show Pennsylvania American Water has raised the wastewater sewer use rate on residential customers at least – or more than – 250% since 2019,” he said. “I’d like the PUC to press Pennsylvania American Water and publicly disclose answers as to why the sewer rate was raised 60% per year since 2019.”
Mary Tanealian, of Tobyhanna, relies on Social Security and said PAWC’s requested rates would make it harder to live on a fixed income.
“We are not at poverty level, my husband and I, but… we also have other bills that low-income families also have. We have medical bills. We’re seniors,” she said.
Pa. American Water, which operates in 37 counties, is one of 14 subsidiaries of the American Water Company.
State lawmakers, including Sen. Marty Flynn (D., 22nd), Rep. Bridget Kosierowski (D.,114th), Rep. Jim Haddock (D., 118th), Rep. Maureen Madden (D., 115th) and Dunmore Mayor Max Conway, also spoke in opposition of the rate hikes at the 1 p.m. hearing. At least one resident chose to testify at 6 p.m. due to time limits set at the earlier hearing.
