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Pennsylvania Water Company Seeks 11% Rate Increase for Upgrades

The Pennsylvania subsidiary of American Water Works Co., the largest publicly traded U.S. water company, asked state regulators to approve an 11 percent rate increase to replace aging pipes, pumps and infrastructure.

Pennsylvania American Water filed an application on April 30 with Pennsylvania’s Public Utility Commission requesting a $6.12 a month increase in water rates for a typical customer. If approved, the average monthly residential water bill, using 3,960 gallons per month, would be $58.63, or about a penny per gallon of tap water, the company said.

The request is primarily to help pay for $731 million that the utility has spent on improvements including replacing 300 miles of pipes and water infrastructure upgrades for 390 communities Pennsylvania American serves since its last rate case in 2011, President Kathy Pape said in a statement.

The American Society of Civil Engineers gave the nation’s water and wastewater infrastructure a barely passing D grade on March 19, saying with almost 240,000 water main breaks a year, it would cost at least $1 trillion to fix and replace systems.

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