BASA customers concerned over proposed PA American costs
Louise Love, of Butler, said Pennsylvania American Water’s request to increase wastewater rates an average of $30 per customer will financially hurt many people in the region.
The water company sent a notice to customers saying the company filed a request Nov. 8 with the Pennsylvania Public Utility Commission to increase monthly wastewater rates about $30 for average homeowners and about $115 for commercial customers. While the request would effect all of the company’s customers in Pennsylvania, it is contingent in Butler County on the finalization of the water company’s purchase of the Butler Area Sewer Authority.
If approved, the rates wouldn’t take effect for new Pennsylvania American customers in Butler County until one year from the closing of the sale or Jan. 1, 2025 — whichever is later. Love said no matter how long it takes for rates to increase, the added cost will eventually catch up to the average BASA customer.
“For average living, that’s going to take a lot of people over, and you’re stuck with it,” Love said. “We want responsible corporations, not at the expense of people who don’t have the money.”
Although the PUC board approved the sale of BASA to the water company on Nov. 9, the commission has not filed an order of approval on the sale. Once the approval is filed, there will be a 30-day review period, and after that, the city of Butler and Butler Township will split the proceeds from the $230 million sale, following the payment of debts and liabilities. The two municipalities are the sole incorporators of the Butler Area Sewer Authority and original investors in the wastewater system, but BASA also has customers in Center Township and East Butler borough, plus portions of Connoquenessing, Oakland, Summit and Penn townships.
According to the notice, residential customers using 3,122 gallons a month would pay a $74 bill instead of $46; commercial customers using 22,094 gallons a month would pay $345 instead of $229; and industrial customers using 685,947 gallons a month would pay $9,217 instead of $7,864. Gary Lobaugh, senior manager of government and external affairs for Pennsylvania American Water, said these usage figures are the statewide average.
As part of the agreement, Pennsylvania American Water will contribute $3.5 million, or $700,000 annually over five years, to the company’s statewide hardship grant program, which helps low-income families pay overdue water and wastewater bills in emergencies. The company also will expand eligibility for hardship grants to those earning 250% of federal poverty income guidelines.
The notice sent to customers also said the water company plans to invest $1 billion to improve service reliability, water quality and fire protection for more than 400 communities across Pennsylvania.
Lobaugh said Thursday about $12 million will be used on upgrades to sewage systems in Butler starting in 2024 and into 2025.
Lobaugh also said the proposed rate increases would be based on “winter averages,” and the residential bills would be based on a customer’s water usage from the prior January and March, to better reflect seasonal usage.
“The wastewater is currently calculated by the total amount of water that has been through the meter,” he said. “It would either be based on that winter average or what they are actually using, whatever is less.”
A statement from the BASA board of directors Thursday, Nov. 16, said the agency likely would have had to request a rate increase to help fund repairs and capital projects.
“Right now, there is more than $75 million in capital projects that BASA must complete, and that work simply cannot be done under the current rate structure,” the statement said. “Our infrastructure is old, and when that occurs, it becomes significantly more costly to maintain. BASA simply does not have the capacity or funding to do all that work.”
The proposal to raise wastewater rates surprised Tom Rodgers, who owns rental properties in Butler and Butler Township, because the increases are lower than he expected.
“It surprises me that it's not more than that. It'll be up to a hundred dollars in a few years,” said Rodgers, of Penn Township. “Every BASA customer is going to pay back that profit that the mayor, council, township took.”
Lobaugh said an estimated 55,000 customers across Pennsylvania will be eligible for discounted wastewater rates because of the expanded eligibility requirements included in the BASA purchase agreement. Customers can speak with Pennsylvania American Water customer service to find out if they are eligible for financial aid.
Lobaugh also said the water company could embark on renovation projects as soon as the sale is finalized.
“We feel confident that upon close a lot of these projects will begin,” Lobaugh said. “It won't be 10 projects at a time, but we'll start making the infrastructure changes.”
Love said her water bill through Pennsylvania American Water has also increased over the years, but the quality of water hasn’t. She said she fears the same will happen with her wastewater bills.
“Their improvements should be giving us very good drinking water,” she said. “The people in control have a huge responsibility to keep things safe for us and not be taking profit over people.”
