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Lawmakers press PUC on PA American Water hardship‑fund commitment after large rate request
Summary
During a budget hearing, Rep. Mullins and PUC members discussed PA American Water’s requested rate increases, a recommended $1 million addition to the company’s hardship fund from the commission’s order, and whether the company has met that commitment or can be compelled to do so.
Representative Bridget Mullins pressed the Pennsylvania Public Utility Commission about whether PA American Water fulfilled a commission‑recommended $1 million contribution to the company hardship fund after the utility’s proposed multi‑hundred‑million‑dollar rate request.
Mullins reminded the commission that PA American Water had sought a $202.4 million rate increase in a recent proceeding and that the PUC recommended a $1 million augmentation to the company’s hardship fund as a customer‑protection measure linked to any approved increase. "Can you just comment on the status of American Water's commitment?" she asked.
PUC Chairman Steve DeFrank said the commission included the recommendation in its order and noted the distinction between compelled regulatory orders and settlement terms. "PA American has developed a customer assistance program, which is separate . . . the company believes they met that commitment. In my opinion, I'm not sure they did," DeFrank said. He added the PUC can compel terms through settlement negotiations and that PPL followed settlement terms in an earlier case to fund a hardship program.
Why this matters: Hardship funds help low‑income customers pay utility bills. Lawmakers asked whether the PUC has statutory tools to ensure a utility’s post‑order actions translate into help for eligible customers rather than costs passed back to ratepayers.
What lawmakers heard and next steps: Commissioners said voluntary customer assistance programs and settlement conditions are common, but where terms are included in a settlement they are more likely to be fulfilled. The PUC also flagged related quality‑of‑service investigations that arose from public testimony in the PA American proceeding. Lawmakers asked the PUC to follow up with verification of whether the full $1 million was deposited and on the statutory authority to require such funding if necessary.
