State regulators on Thursday rejected Scranton’s try for reconsideration of Pennsylvania American Water Co.’s rate hike.
The Public Utility Commission’s 5-0 decision means the $99.3 million water and sewage disposal rate hikes will stay intact. The commission voted without comment.
In the Aug. 7 reconsideration request, city solicitor Jessica Eskra contended the rate hikes shouldn’t go into effect in the state’s northeast until the commission finishes its investigation into complaints of unaffordable, dirty, cloudy, smelly and rust-contaminated and otherwise deficient water.
A water company lawyer argued against reconsideration. He said the city didn’t present any “new and novel argument, not previously heard” or mention anything the PUC overlooked.
Eskra acknowledged the “new and novel argument” standard but says it doesn’t require new evidence.
The PUC agreed to reconsider the decision but rejected altering it. In its order, the commission agrees no new evidence was presented and said its investigation of water quality “has no impact” on the rate hike.
“The city has not presented a convincing argument that our (rate hike) … order was in error,” the order says.
Scranton Mayor Paige Cognetti expressed disappointment and could not immediately say if the city will appeal in court.
“We're keeping focused on making sure that we're doing everything we can to keep the water and sewer rates down in Scranton, which … is really important to people,” Cognetti said. “So, we're going to keep plugging away at the utilities piece to the best of our ability.”
In an email, water company spokeswoman Susan Turcmanovich said the company bases rates on actual costs of providing service and investments in new water lines and other infrastructure. The rate hike request reflected $1 billion in system investments to provide “safe and reliable service,” she said.
“Not only are these investments critical to the public’s health and safety, but they also support the economic health of the communities we serve,” she said.
