Kane officials oppose proposed hike in water rates

June 5, 2011

Kane borough officials have filed objections against a request by Pennsylvania American Water to increase water rates for Kane and other communities it serves.
In similar letters to the Pennsylvania Utility Commission (PUC), Kane Mayor Doug Caldwell and Kane Sewer Authority Chairman Jim Salvamoser have challenged the company’s proposed hike because of the “economic impact such an increase would have on the citizens of our community.”
“The majority of our population is elderly and on fixed incomes,” Caldwell and Salvamoser said in their letters to the PUC. “This (water rate increase) will create a financial hardship on them.”
According to Pennsylvania American Water, the company’s request for the rate increase “would bring a typical monthly residential water bill to $54.87.” This figure represents an increase of $6.42 per month, the company said in announcing its plans to seek the rate hike.
The “typical monthly residential water bill” is based on the use of 4,150 gallons per month, according to the company.
Kathy L. Pape, president of Pennsylvania American Water, said the “primary reason” for the request for a water rate increase is based on the company’s investment of $533 million in “improvements” since its last “rate case” in 2009.
“These capital investments are necessary to enhance water quality, service reliability and fire protection for the communities served by Pennsylvania American Water,” Pape said. The improvements include “upgrades” to water treatment facilities, storage tanks, wells and pumping stations, according to a company report.
In the past two years, the company said it also has replaced 177 miles of “aging” main water lines as well as valves, service lines and other parts in its nearly 9,900-mile distribution system in communities in Kane and other communities in the state.

See full article by purchasing the June 6 edition of The Kane Republican.