The Pennsylvania Public Utility Commission last week issued a final decision in the Aqua Pennsylvania base rate case, regarding residential customers in Lake Harmony and Tobyhanna.

The case arose out of Aqua PA’s use of flat rates for wastewater service based on the assumption of full-time occupancy in townships that have a substantial amount of seasonal homeowners.

As part of the settlement, Aqua and the Office of Consumer Advocate must conduct a review of the fairness of the flat-rate billing structure for customers in Lake Harmony and Tobyhanna. A follow-up report detailing its findings is required to be filed with the PUC within 120 days.

The ruling says Aqua must engage in a collaborative session with ratepayers from both communities to explore alternative rate structures. To improve transparency, Aqua must also develop a dedicated website and include bill inserts to better explain flat-rate billing to affected customers.

In 2025, customers in Kidder Township/Lake Harmony and Tobyhanna should expect communications regarding the collaborative session.

In the settlement, Aqua PA committed to meet with its Aqua Assistance Collaborative by April 1 to identify points of contact with consumers who are at risk of termination for nonpayment. The firm would inform the customer they may be eligible to apply for the company’s Customer Assistance Program for bill discounts and back payments.

Customers who would opt to apply for those benefits will have their termination and collections-related activities temporarily placed on hold.

The settlement states enrollment in CAP is an alternative to entering into a deferred payment agreement. Aqua PA agreed to provide all of the above-referenced information to customers in plain language and will begin to include the above information in collaboration with the AAC in its termination notices, call scripting and call center reference tools.

The agreement states Aqua PA and the AAC will continue to identify other touch points and develop language and messaging of the above information to provide customers during those touch points. In Aqua PA’s first report to the commission’s Bureau of Consumer Services through its Consumer Education and Outreach Plan, following April 1, 2026, Aqua PA will include a section of the report which specifically identifies the steps taken to comply with this provision of the settlement agreement.

Customer arrearage forgiveness credits will be provided in the amount of $40 per month, regardless of arrearage amount. Within 120 days of a final order in the PUC proceeding, arrearage forgiveness credits will be granted for in-full payments as those payments are made, even if those payments have not been paid on their due date.

In addition, Aqua PA committed to propose in its next base rate proceeding a plan to implement an arrearage forgiveness program to be effective no later than the effective date of rates in its next rate case, whereby a customer’s total arrearage balance is forgiven after 36 in-full payments, which need not be consecutive to qualify for arrearage forgiveness.

Aqua PA will offset its bill discount credits by 25.99% and its arrearage forgiveness credits by 39.37% for both water and wastewater and is directed to assess potential water savings achieved through each aspect of its Leak/Line Repair and Conservation Programs.

The complete PUC ruling is posted to its website, at https://www.puc.pa.gov/docket/R-2024-3047824. Select the tab Public Documents, and select the top file, “Opinion and Order.”