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State regulator approves smaller than requested rate hikes for Poconos utility

Community Utilities of Pennsylvania customers attend a state Public Utility Commission hearing on the company's water and sewage disposal rate hike requests Feb. 1, 2024 at Tamiment in Pike County
Pennsylvania Public Utility Commission X Account
Community Utilities of Pennsylvania customers attend a state Public Utility Commission hearing on the company's water and sewage disposal rate hike requests Feb. 1, 2024 at Tamiment in Pike County

Water and sewage disposal customers in parts of the Poconos will pay more for both soon, but not as much as they might have.

The state Public Utility Commission unanimously approved a settlement with Community Utilities of Pennsylvania that allows rate hikes of about 20% lower than what the company wanted.

The settlement also addresses customer concerns. Customers complained about low water pressure, poor quality water, a lack of fire protection, boil-water advisories and other problems. On sewage disposal, they complained about odors and sewage backflow into their homes.

The water settlement affects about 3,300 water customers in Stroud and Pocono townships in Monroe County, part of Hanover Township in Northampton County and part of Lehman Township in Pike County.

The sewage disposal settlement affects about 3,800 sewage disposal customers in the same Monroe and Pike townships and West Bradford Township in Chester County outside Philadelphia.

The utility wanted a $1,470,360 water rate hike that would have raised the monthly bill for most of the residential customers using about 3,500 gallons a month by about 59% -- from $63.90 to $101.37.

Rates for residents in the Tamiment service territory in Lehman Township in Pike would have gone up 69% -- from $44.18 to $74.68.

The PUC trimmed that to $1,227,538, or 83.4% of the original request.

The PUC and company did not release the typical bill estimates based on the approved rates. Using the 83.4% figure the settlement hike works out to a 48.9% for Monroe and Pike, except for Tamiment where it’s 57.6%.

The utility wanted a $1,738,944 sewage disposal rate hike that would have raised the monthly bill for most of the residential customers using about 3,400 gallons a month by about 51% --- from $74.73 to $112.51. At Tamiment, the proposed hike was 60% --- $57.25 to $91.48.

The PUC cut that to $1,447,621, or 83.2% of the original request. Based on that percentage, sewage disposal rates will rise about 42.1% in all but Tamiment where the hike is 49.9%.

The increase takes effect Aug. 9.

In a statement, PUC Chairman Stephen M. DeFrank highlighted the utility’s “disconcerting” lack of fire protection in much of its system. He urged action “as expeditiously as possible” with the expectation the company won’t ask for more rate hikes until it fixes the problems.

Under the settlement, the company agrees not to seek more rate hikes until at least February 2026. The settlement also:

  • Doubles the income limit for the utility’s program that aids low-income customers with bills.
  • Adds a permanent low-income section to its website that includes application forms and information about eligibility requirements.
  • Requires customer outreach in English and Spanish about the availability of payment plans for overdue bills.
  • Requires yearly system-wide leak tests and repairs to fix the leaks.
  • Requires engineering and hydraulic studies to identify water pressure and fire suppression issues and regular updates on fixes.
Borys joins WVIA News from The Scranton Times-Tribune, where he served as an investigative reporter and covered a wide range of political stories. His work has been recognized with numerous national and state journalism awards from the Inland Press Association, Pennsylvania Associated Press Managing Editors, Society of Professional Journalists and Pennsylvania Newsmedia Association.

You can email Borys at boryskrawczeniuk@wvia.org