The Pennsylvania Public Utility Commission’s approval of a lower-than-requested rate increase by Pennsylvania American Water included a denial of the water company’s request for a rate increase to cover the cost of its acquisition of the Butler Area Sewer Authority.

The PUC voted Thursday to revise Pennsylvania American Water’s revenue increase request from $202.4 million to $99.3 million and denied several other proposals, including one for a rate recovery related to BASA.

Pennsylvania American claimed rate recovery for yet-to-be-finalized transactions, including BASA, in it’s rate increase filings. Parties in the rate case proceeding, including the office of consumer advocate, argued that because the transactions have not been finalized, Pennsylvania American should not be permitted to recover the cost of the transactions, according to Utility Commission spokesman Dave Hixson.

Because the BASA acquisition is still being litigated in Commonwealth Court and has not been finalized, the parties argued it should be excluded for rate recovery purposes, Hixson said.

The Public Utility Commission approved the BASA acquisition in November 2023. That decision is under appeal in the Commonwealth Court.

The BASA sales agreement includes a rate freeze for one year after the sale closes.