Aqua PA Proposes Rate Hike Near Doubling Limerick Twp. Rates

LIMERICK TOWNSHIP, PA — Aqua Pennsylvania has asked the PA Public Utility Commission to approve a wastewater rate hike in Limerick Township that will almost double most residential bills.

Aqua PA's proposal to the Pennsylvania PUC on Aug. 20 asked to hike rates by $97.7 million per year for all their water and wastewater operations in the township, saying this amount covers improvement already made since April 2020 and going forward through March 2023. Aqua told the PUC that the company has invested about $1.1 billion in infrastructure and other improvements since its last rate increase.

Limerick Township reminded residents in a notice that "This is only a request and the PUC may or may not approve their requested rate increase."

An investigation of the need for the rate increase could delay it until May 2022, Aqua PA's proposal said.

The Township told residents the projected increase amount is not solely because of the purchase of Limerick’s sewer system by Aqua Pennsylvania in 2018. The PUC notice states it is a rate increase for system repairs and improvements across all Aqua water and sewer customers. Aqua only provides public sewer within the Township;

Limerick sewer rates have not increased since 2014. "If the Township had not sold the
sewer system in 2018, projections show that rate increases would have been required by
the Township for system repairs, higher system operating costs, and sewer capital
upgrades," the Township's notice said.

If Aqua PA's request were approved as the company is asking, a residential customer using 3,800 gallons of water a month would see their bill increase from $37.59 to $71.27 each month. Businesses using 5,800 gallons of water per month would see their bill go from $50.90 to $88 each month, according to Aqua PA's proposal.

Limerick Township's Aug. 27 memo to residents, posted along with Aqua PA's notice, explained that along with sewer rate increases, Township Real Estate Tax increases would have been necessary to fund Long-Term Capital Projects related to police, fire, and emergency response services, as well as the expansion of the township park, trails, and open space system, along with upgrades to Limerick’s roadway infrastructure.

"The combination of increased Township sewer rates and real estate tax projections would have resulted in higher monthly expenses than what is proposed with this PUC filing. As a result of the sale of the sewer system to Aqua, Limerick Township has been able to maintain real estate taxes at their current level since 2016, and fund the Township’s Capital Projects, while expanding all levels of services to the community," the Township said.

"Residents and businesses are encouraged to participate in the PUC process, as detailed in
the letter," the Township told residents. Aqua's proposal invites residents to write to the PUC to tell why they object to the increase. Residents may also attend a public input hearing if the Public Utility Commission opens an investigation into the proposed increase.

For more information on the sewer sale, please visit the Limerick Township website to view a copy of a PowerPoint presentation that outlines the business strategy that guided the Township in its decision.

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