The York Water Company Files a Rate Request Based on $145 Million in Investment

Rhea-AI Summary

The York Water Company (NASDAQ:YORW) has filed for its first rate increase since 2022 with the Pennsylvania Public Utility Commission, seeking a $24.2 million increase in annual revenues based on $145 million in capital investments through February 2027. The proposed increase would raise typical residential water bills by $14.16 monthly and wastewater bills by $35.85 monthly. The investments focus on infrastructure improvements including replacing aging water mains, upgrading treatment facilities, expanding wastewater plants, and ensuring regulatory compliance. The rate increase, if approved, could be effective August 1, 2025, or be delayed until March 2026. York Water serves over 212,000 people across 57 municipalities in Pennsylvania.

Positive

• $145 million investment in infrastructure improvements demonstrates commitment to system reliability and growth
• First rate increase request in three years shows cost control discipline
• Expansion of wastewater treatment plants indicates growth in customer base
• Company maintains strong regulatory compliance and infrastructure updates

Negative

• Significant rate increase for customers: $14.16 monthly for water and $35.85 monthly for wastewater
• Implementation of rate increase could be delayed by regulators until March 2026
• Large capital investment may impact company's short-term financial metrics

Insights

Utility Industry Financial Analyst

York Water's $24.2M rate increase request following $145M in infrastructure investments signals potential revenue growth despite regulatory uncertainty.

York Water's filing for a $24.2 million rate increase represents a significant potential revenue catalyst that deserves careful examination. This application, coming three years after their previous rate case, is anchored by $145 million in capital investments made since 2022 through February 2027. The requested increase would meaningfully impact the company's revenue structure, which is essential for a regulated utility where rate cases are the primary mechanism for recovering infrastructure investments.

Breaking down the consumer impact reveals strategic pricing considerations. For water service, the typical residential customer would see an increase of $14.16 monthly ($170 annually), while wastewater customers would experience a more substantial $35.85 monthly increase ($430 annually). This differential pricing approach reflects the higher capital intensity of wastewater infrastructure upgrades mentioned in the filing.

The regulatory timeline introduces an important element of uncertainty. While York Water has requested an August 1, 2025 effective date, the PUC could delay implementation until March 2026, creating a 7-month variance in when these new revenues might materialize. This regulatory lag is a critical factor in the company's cash flow planning and investor expectations.

The investment focus on system reliability, regulatory compliance, and capacity expansion demonstrates a balanced capital allocation strategy. The emphasis on infrastructure renewal (replacing aging water mains, meters, hydrants) combined with regulatory-driven investments (dam improvements, treatment upgrades) shows management's disciplined approach to maintaining its regulated asset base while positioning for community growth through expanded wastewater treatment capacity.

YORK, Pa., May 30, 2025 (GLOBE NEWSWIRE) -- The York Water Company (NASDAQ:YORW) filed an application with the Pennsylvania Public Utility Commission (PUC) requesting a general increase in rates for water and wastewater services for its customers.

“While water and wastewater infrastructure throughout the Commonwealth of Pennsylvania is in need of improvement, York Water consistently makes timely and necessary replacement of pipes, pumps, and both water and wastewater treatment facilities each year,” said JT Hand, President and CEO of The York Water Company. “We do not take rate increases lightly. Our last increase was three years ago and following months of consideration we found that this increase is necessary in order to invest in every aspect of our system to ensure continual safe, reliable, water and wastewater services for our customers.”

This request, the first since 2022, includes $145 million in capital investments made by The York Water Company since the last rate increase through February 2027. These investments include replacing, reinforcing, and relining aging water mains, replacing meters, hydrants, and service lines to ensure customers have a safe, reliable supply of water that meets current and proposed regulations; expanding wastewater treatment plants to meet the needs of growing communities; improving company owned dams to comply with current regulatory standards required by the Department of Environmental Protection; and upgrading water and wastewater treatment equipment and facilities to maintain compliance with current regulations and provide resiliency in operations.

The Company is asking for a $24.2 million increase in annual revenues. If the request is granted in its entirety, the typical residential customer would pay an additional $14.16 per month (47 cents per day) for water and an additional $35.85 per month ($1.20 per day) for wastewater services. At the increased rates, the average cost of 1,000 gallons of water would remain slightly more than a penny per gallon.

If granted immediately, the rate increase would be effective August 1, 2025. The PUC may delay the effective date until March 2026. The rate review process is transparent and involves opportunities for public participation. York Water customers can contact our Customer Service team or visit www.yorkwater.com for more information.

The York Water Company provides water and wastewater services to over 212,000 people in 57 municipalities in Adams, Franklin, Lancaster, and York counties. 

Contact Information:
JT Hand, President & CEO
jth@yorkwater.com
-OR-
Matthew Poff, CFO
matthewp@yorkwater.com

717-845-3601

FAQ

How much will YORW's proposed rate increase cost residential customers?

The typical residential customer would pay an additional $14.16 per month for water and $35.85 per month for wastewater services.

When was York Water Company's last rate increase?

York Water Company's last rate increase was in 2022, making this their first rate request in three years.

How many customers does York Water Company (YORW) serve?

York Water Company serves over 212,000 people across 57 municipalities in Adams, Franklin, Lancaster, and York counties in Pennsylvania.

What is the total investment amount in YORW's rate increase request?

The rate request is based on $145 million in capital investments made by York Water Company since the last rate increase through February 2027.

When would YORW's new rates take effect if approved?

If approved, the rates could take effect as early as August 1, 2025, but the PUC may delay the effective date until March 2026.