Aqua Pennsylvania gets OK for 5.2 percent rate hike

The Pennsylvania Public Utility Commission on Wednesday approved an increase for Aqua Pennsylvania Inc.'s 406,050 customers that will boost residential water rates 5.2 percent, less than half the company's request.

The commission voted, 4-0, to approve the increase, which was negotiated among the PUC, user groups and advocates, and the company, a unit of Aqua America Inc., of Bryn Mawr.

The bill for an average residential customer will increase $2.53 a month to $50.81 from $48.28. The company sought an increase of $5.51, or 11.4 percent.

The settlement will bring the company $23.6 million in additional annual revenue, compared with the $43.2 million it requested in November.

In its November filing, the Bryn Mawr company said about three-quarters of the rate increase would pay for capital improvements.

The PUC last granted the company an 11.2 percent increase in 2008, totaling $34.4 million.

Aqua Pennsylvania provides service in portions of 27 counties, including Bucks, Chester, Delaware, and Montgomery.