Water, wastewater rate hikes that would include Quarryville area suspended for investigation

Proposed Pennsylvania American Water Company rate hikes that would include several hundred Lancaster County customers in and around Quarryville have been suspended by the state for up to seven months so they can be investigated.

The state Public Utility Commission on Thursday approved the suspension of PAWC’s proposed rate hikes equaling $168.7 million, or approximately 14.6%, in total annual operating revenues for water and wastewater service across the company’s 37-county operating area. PAWC said the hikes are needed to support $1.2 billion in spending through mid-2027 to modernize and strengthen its water and wastewater systems.

While the proposed rate hikes vary depending on location across the state, Lancaster County customers would see the following if the PUC approved the rate hikes as requested:

• The average residential water customer using 3,263 gallons a month would see a monthly increase of $13.72, from $81.55 to $95.27.

• The average residential wastewater sanitary sewer customer based on winter average usage of 3,164 gallons a month would see a monthly increase of $10, from $109.50 to $119.50. 

PAWC has 210 water and 250 wastewater customers in Lancaster County. Statewide, PAWC serves approximately 682,000 water and 97,000 wastewater customers.

With the rate hikes suspended, the PUC will set public hearings to gather input before making a decision by Aug. 13, 2026. The dates and times of those hearings have yet to be determined.

Rate hike proposals like these are typically suspended for investigation. For example, rate hike proposals by both PPL Electric Utilities and the City of Lancaster water system are currently suspended for investigation.

Investigations can lead to lower than requested increases being approved. For example, a rate increase request by Lancaster County natural gas supplier UGI Utilities totaling $110.4 million a year was scaled back by the PUC to $69.5 million and approved this year.

PAWC has more information about investments aided by the proposed rate increase at amwater.com/paaw/fromtreatmenttotap.