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PUC and commissioners say EPA PFAS rule will raise treatment costs; smaller systems face hardest burden
Summary
Commissioners told the Appropriations Committee that EPA’s PFAS drinking‑water rule will require substantial treatment investments and that while larger investor‑owned utilities can finance upgrades, smaller systems may struggle; PUC pointed to PennVest loans and pending litigation against chemical manufacturers as partial mitigations.
Commissioner John Coleman told lawmakers that EPA’s drinking‑water regulation for PFAS (per‑ and polyfluoroalkyl substances) will translate into large treatment investments for water systems and that smaller utilities may face the heaviest burden.
Coleman said larger investor‑owned water companies estimate hundreds of millions of dollars in capital spending to comply; he cited one large company estimating a $250 million investment. "For one of the large investor owned utilities, they're estimating a $250,000,000 spend," Coleman said. He and other commissioners said that while treatment costs are recoverable in rates, the rate implications for small systems with fewer customers could be severe.
What the PUC is doing: Commissioners said water utilities are pursuing low‑interest PennVest financing and some have brought litigation against chemical manufacturers; those funding sources and legal recoveries will help offset rate pressure. The PUC emphasized that state and federal grant and loan programs will be important to prevent undue rate shock, especially for medium and smaller systems.
Why this matters: PFAS treatment can require advanced filtration and long‑term monitoring, which are capital‑intensive. If costs are passed to small customer bases, rates could become unaffordable unless state or federal assistance or litigation recoveries are available.
Next steps: The PUC said it will monitor costs submitted in dockets, encourage utilities to seek PennVest loans and grants and track litigation recoveries. Lawmakers asked the PUC to continue coordinating with DEP and to offer the committee specific estimates on how many systems need significant upgrades and the estimated per‑customer cost impacts.
