York Water Company Files for Rate Increase

Rhea-AI Summary

The York Water Company (NASDAQ:YORW) has requested an $18.8 million increase in annual water revenues and a $1.5 million increase for wastewater, as filed with the Pennsylvania Public Utility Commission on May 27, 2022. This increase stems from approximately $176 million in capital investments made since its last rate filing in 2018, aimed at enhancing utility system resiliency and reliability. Improvements include rehabilitating the Lake Williams Dam, replacing aging infrastructure, and constructing a new wastewater treatment plant.

Positive

• Request for $18.8 million increase in annual water revenues and $1.5 million for wastewater indicates strong business growth plans.
• Approximately $176 million in capital investments demonstrate commitment to infrastructure improvements and regulatory compliance.
• Efforts to replace lead service lines enhance customer health and safety while improving water quality.

Negative

• The proposed increases may burden customers with higher utility costs.
• Increased costs such as personnel expenses and depreciation may impact future profitability.
• Potential regulatory scrutiny from the PUC could delay the rate increase approval.

YORK, Pa., May 27, 2022 (GLOBE NEWSWIRE) -- The York Water Company (NASDAQ:YORW) on May 27, 2022 asked the Pennsylvania Public Utility Commission (PUC) for a general increase in base rates.

JT Hand, President and CEO of York Water, said the Company is asking for an $18.8 million increase in annual water revenues, and a $1.5 million increase in annual wastewater revenues.

The Company’s filing with the PUC also requests to combine, in part, the revenue requirement for the Company’s wastewater operations with the Company’s water operations as authorized by legislation enacted in 2012.

President Hand said the increase is necessary due to approximately $176 million in capital investments that the Company has made since its 2018 rate filing and will make through February of 2024. The capital investments are necessary to improve resiliency and reliability of the Company’s utility systems. Capital investment has or will be made to: rehabilitate the Lake Williams Dam to comply with current regulatory standards; reinforce, replace, and reline aging water mains; replace service lines, meters, and hydrants, including replacement of all company-owned lead service lines within a compressed two-year time frame; construct a wastewater treatment plant to serve the wastewater needs of a growing community; enhance security across certain assets, and provide enhanced redundancy in case of emergencies; increase water quality and operational efficiency through upgrades to facilities and equipment; and expansion and improvements of the water and wastewater treatment plants and other facilities to better meet current and upcoming regulations.

Hand said: “Costs to be recovered in this rate filing include replacement costs for over 45 miles of aging pipeline, or about 4.5% of our total pipe, which extends the life of our infrastructure, reduces costs associated with main breaks and leaks, and provides improved customer service, water quality and reliability. In addition to these capital investments, we are also seeking to recover increased costs such as personnel expenses, depreciation, and increases in normal operations and maintenance expenses. York Water remains one of the most efficient water and wastewater utilities in the nation, continuing to reduce or eliminate various expenses since its last rate case, including reduction in income taxes from the tax repair deductions. This has helped to offset and delay this proposed increase in rates.”

The York Water Company is the oldest investor-owned water utility in the United States serving approximately 204,000 people in 51 municipalities in York, Adams, and Franklin Counties, South Central, Pennsylvania.

FAQ

What is the reason for York Water's rate increase request?

York Water is seeking an $18.8 million increase in water revenues and $1.5 million for wastewater to recover costs associated with significant capital investments made to improve utility systems.

How much has York Water invested since its last rate filing?

Since its 2018 rate filing, York Water has made approximately $176 million in capital investments.

What improvements are included in York Water's investment plan?

Improvements include rehabilitating the Lake Williams Dam, replacing aging water mains, and constructing a new wastewater treatment plant.

When did York Water file for the rate increase?

York Water filed for the rate increase on May 27, 2022.

How many customers does York Water serve?

York Water serves approximately 204,000 people across 51 municipalities in South Central Pennsylvania.