BCWSA Comment on Newtown Artesian Proposed Rate Increase

badge-orange-webThe Newtown Artesian Water Company (NAWC) recently filed a petition with the Public Utility Commission (PUC) seeking special permission to file a tariff supplement increasing its Purchased Water Adjustment Clause (PWAC) to $0.4389 per 1,000 gallons effective January 11, 2011.  According to NAWC this increase is a result of BCWSA’s rate increase.

In 2008, The Philadelphia Water Department (PWD) outlined a four year rate increase schedule to BCWSA  in excess of 40% over the years 2009 through 2012. In turn, the Authority raised rates by only 24% in the hopes that negotiations with the City would result in a reduced rate.  The Authority was hoping to not have to pass on the additional increase to our customers.  Unfortunately, negotiations with the City were fruitless, and the arbitration proceedings are still pending.

In 2011, PWD, over a full year in advance of the 2008 rate schedule expiration, increased rates approximately 100% over and above the highest rate projected in the 2008 projection.

As a result BCWSA has had to calculate a new revenue requirement for the additional cost.  Using the updated PWD data, the BCWSA wholesale rate moved from no monthly minimum and $2.68 per 1000 gallons to the 2011 rate of $540.92 per month minimum and $3.44 per 1000 gallons. This is an increase of 28% overall.