TRANSFER PUC, utility reach compromise; Reynolds Water to raise rates

TRANSFER, Pa. -- It came six months later than requested, but the Reynolds Water Co. has been granted a substantial rate increase.
The Pennsylvania Public Utility Commission approved a compromise settlement that will give the company a 33.4-percent rate increase, generating about $109,000 in new revenues annually.
The approval came last week.
Reynolds had asked in December for a 46.8 percent increase to take effect Feb. 16, generating $153,000 in new revenue. However, approval was delayed as the PUC reviewed the request.
The state agency said only one formal complaint was filed against the increase.
The compromise at 33.4 percent was recommended June 2 by Fred Nene, a PUC administrative law judge.
The PUC said the average residential customer using 44,000 gallons of water a year will see their bill rise about $80 to a total of $320 per year.
The last increase for the company, which serves about 730 residents, was 16.4 percent in August 1998.
Brad Gosser, company director of operations, said the latest increase is needed to meet increased operating expenses resulting from new state and federal regulations, keep up with overall inflation, finance improvements and provide a reasonable rate of return on the company's investment.