NOTICE OF INCREASE IN DISTRIBUTION SYSTEM IMPROVEMENT CHARGE

The Newtown Artesian Water Company (NAWC or Company) has filed a request with the Pennsylvania Public Utility Commission (PUC) to increase the maximum percentage charge permitted under its Distribution System Improvement Charge (DSIC) from 5% to 7.5% of revenue effective November 1, 2017. The DSIC is intended to provide NAWC with the resources to accelerate the replacement of aging water distribution infrastructure and comply with evolving regulatory requirements. This notice describes the Company's request, the PUC's role and what actions you can take.

If the Company's request is approved, the total bill for a Newtown Artesian Rate Area residential customer with a 5/8-inch meter and typical usage of 15,000 gallons per quarter would increase from $104.09 to $106.60 per quarter or by 2.5%. The total bill for an Indian Rock Rate Area residential customer with a 5/8-inch meter and typical usage of 15,000 gallons per quarter would increase from $111.62 to $114.31 per quarter or by 2.5%.

The total bill for a Newtown Artesian Rate Area commercial customer with a 5/8-inch meter and typical usage of 70,000 gallons per quarter would increase from $411.46 to $421.38 per quarter or by 2.5%. The total bill for an Indian Rock Rate Area commercial customer with a 5/8-inch meter and typical usage of 50,000 gallons per quarter would increase from $324.78 to $332.61 per quarter or by 2.5%.

Rates for a Newtown Artesian Rate Area industrial customer with a 2-inch meter and typical usage of 100,000 gallons per quarter would increase from $721.10 to $738.46 per quarter or by 2.5%. There are no industrial customers presently in the Indian Rock Rate Area.

Rates for a Newtown Artesian Rate Area public customer with a 2-inch meter and typical usage of 90,000 gallons per quarter would increase from $665.21 to $681.22 per quarter or by 2.5%. Rates for an Indian Rock Rate Area public customer with a 6-inch meter and typical usage of 60,000 gallons per month would increase from $1,379.65 to $1,412.70 per month or by 2.5%.

To find out your customer class or how the requested increase in the DSIC maximum percentage charge may affect your water bill, contact NAWC at (215) 968-6781. The increase in the DSIC maximum percentage charge requested by the Company may be found in Supplement No. 126 to Tariff Water-Pa. P.U.C. No. 9. You may examine the material filed with the PUC which explains the requested increase and the reasons for it. A copy of this material is available on the Company's website newtownwater.com and is kept at NAWC'S office at 201N. Lincoln Ave. and may be reviewed Monday through Friday from 8 a.m. to 4 p.m. Upon request, the Company will send you a statement of reasons for the filed changes explaining why the Company requested the rate change.

The state agency which approves rates for public utilities is the PUC. The PUC will examine the requested rate increase and can prevent existing rates from changing until it investigates and/or holds hearings on the request. The company must prove that the surcharge increase is reasonable. After examining the evidence, the PUC may grant all, some, or none of the request or may reduce existing rates.

The PUC may change the amount of the rate increase requested by the utility for each customer class. As a result, the rate charged to you may be different than the rate requested by the company and shown above.

There are three ways to challenge a company's request to change its rates:

  1. You can file a formal complaint. If you want a hearing before a judge, you must file a formal complaint. By filing a formal complaint, you assure yourself the opportunity to take part in hearings about the rate increase request. All complaints should be filed with the PUC before October 31, 2017. If no formal complaints are filed, the Commission may grant all, some or none of the request without holding a hearing before a judge.
  2. You can send the PUC a letter telling why you object to the requested rate increase. Sometimes there is information in these letters that makes the PUC aware of problems with the company's service or management. This information can be helpful when the PUC investigates the rate request. Send your letter or request for a formal complaint form to the Pennsylvania Public Utility Commission, Post Office Box 3265, Harrisburg, PA 17105-3265.
  3. You can be a witness at a public input hearing. Public input hearings are held if the PUC opens an investigation of the company's rate increase request and if there is a large number of customers interested in the case. At these hearings you have the opportunity to present your views in person to the PUC judge hearing the case and the company representatives. All testimony given "under oath" becomes part of the official rate case record. These hearings are held in the service area of the company.

For more information, call the PUC at 1-800-692-7380. You may leave your name and address so you can be notified of any public input hearings that are scheduled in this case. You may also find more information on the Supplement No. 126 and Supporting Information PDF.

Tariff Update