In a room that provides a maximum seating capacity of 105, more than 200 Chester County residents initially filed into the New Garden Township meeting space on Aug. 8 to lend their voices to a public input hearing in opposition to Aqua Pennsylvania, Inc.’s proposal to increase its water service rates by nearly 19 percent and its wastewater rates by more than 20 percent.

Aqua filed the request to the Public Utility Commission (PUC) on May 24, who ordered an investigation on June 13 to determine the “reasonableness” of the proposed and existing rates and assigned the investigation to administrative law judges Gail M. Chiodo and Alphonso Arnold III, who are compiling testimony from all nine public input hearings that were scheduled by the PUC in Luzerne, Montgomery, Delaware and Chester counties from Aug. 1-12. 

Representing Aqua, attorney Kimberly Joyce told the audience that the company filed the rate proposal with the PUC “in order to recover water and wastewater infrastructure improvements that Aqua has made throughout the communities that we serve in Pennsylvania,” she said. “These are infrastructure and operational improvements that ensure continued compliance with DEP (Department of Environmental Protection) requirements, maintain water quality, help rehabilitate water and wastewater infrastructure and hopefully protect the environment in the communities that we serve.”

As the public input hearing got underway, it was delayed by 25 minutes while township officials helped usher some of the overflow audience into the building’s lobby. 

The two-and-a-half-hour hearing, conducted by Arnold – heard a total of 21 testimonies. Other officials present were representatives from the Bureau of Investigation and Enforcement, the Office of the Small Business Advocate and the Pennsylvania Office of Consumer Advocate.

‘This rate hike would be crushing…’

As the public input hearing got underway, the proverbial elephant in the room was the reality that if the PUC rules in favor of the water giant, the proposed rate hikes would increase Aqua Pennsylvania’s total annual operating revenues by $126.7 million, income that would be reflected in rate hikes.

Audience comments began with testimony from State Sen. John Kane and State Rep. Christina Sappey, who quickly set the tone for the hearing.

“Today, I want to express my deep disdain for Aqua and similar for-profit companies who think they can come into our communities and leave us holding the bill,” Kane said. “Well let me tell you, they have another thing coming if they think they can get away with it. Aqua is proposing to increase our water and wastewater rates significantly, expecting families to dig deeper into their pockets for a basic necessity – our public water.

“This isn’t just about numbers on a bill. This is about the very fabric of our communities. It’s about the right to fair and affordable access to essential services. Companies like Aqua believe they shouldn’t be held accountable, when we say, ‘Enough is enough.’ We are here to remind them that we will not be silenced.”

In her testimony, Sappey encouraged the PUC to reject Aqua’s rate hike proposal and “put the people of the Commonwealth first.” 

“The privatization of water and wastewater in our Commonwealth is a dangerous practice which finally has a bright light shining on it,” she said. “It’s not happening under the radar anymore, and my colleagues in the general assembly and I have taken notice.

“Acquiring water and wastewater authorities and passing the cost onto ratepayers is an unconscionable practice – a practice that is far more prevalent in Pennsylvania than in other states where essential companies are operating. The second aspect of this proposed rate hike is the serious financial impact on low- to middle-wage workers here – workers who are absolutely essential to our local economy and the Commonwealth. These folks are trying to survive in the highest cost-of-living region in the state. This rate hike would be crushing and likely send these workers over the [state] border, devastating our economy.”

Following Kane and Sappey, Aqua customers shared their testimonies with Arnold. While some referred to their research, compiled in the form of statistics and trends in support of their opposition, others brought the public input hearing into their kitchen table conversations about the impact higher water and wastewater bill would have on their household finances. 

New Garden Township resident Clair Aiello testified that if Aqua’s proposal passes, it would lead to a 68.5-percent increase in customers’ bills in just a few years. She said that Aqua customers should not have to pay any part of the company’s shareholder profits and management bonuses. 

“Aqua’s latest proposed pricing seems to be for some customers a decrease,” she said. “However, the base charge would increase for all customers by 23 percent and interestingly, they are decreasing the per-thousand-gallon price by $10.90. We should all be questioning why we are currently being overcharged at $23.26 per thousand gallons. Do we expect a refund?

“Do they know what they are doing? Do they know what the cost really is? How can they -- in what seems very arbitrary -- keep changing prices?”

‘For some, it’s medication or water’

Enrico Guiliante, a New Garden Township resident and Aqua Water ratepayer, said he does not support the proposed increase on behalf of all disabled veterans – like himself -- and seniors who are living on a fixed income. His last water bill was $324.52 for three months of service.

“I live in a small community of seniors,” he said. “I do not water my yard. I do not have a pool. We do not have guests staying in the home my wife and I share. We do not have children living in this home, and we do not run our water carelessly, but we have a water bill that is hard to pay after living on a fixed income.

“My two-person household has paid a total of $426.30 for one quarter of water and sewer usage. These costs and the proposed rate increase are outrageous. Aqua Water should not be authorized to have a 20-plus increase in revenue when the majority of our country only receives a one to three percent [cost of living] increase. This practice has caused an average, middle-income household to fall into poverty. For some, it is their medication or water.”

As they have expressed on several social media sources and at township meetings, several audience members took aim at Act 12, which allows private, for-profit companies like Aqua Pennsylvania to acquire municipal water and sewer systems, such as the wastewater system in New Garden Township it purchased from the township in 2020. Enacted in Pennsylvania in 2016, the law allows companies like Aqua Water to purchase systems at potentially inflated prices, which often leads to higher consumer rates. 

While the PUC has made changes to the Act in an effort to increase transparency and oversight, critics of the changes believe that the law still incentivizes for-profit companies to make deals that may not be in the best interests of their customers.

New Garden Township resident Bob Francois urged the need for the water giant to come clean regarding the entirety of both sides of their economic ledger.

“[Aqua] should be required to demonstrate – not just on the revenue side but on the cost side -- and not why costs are going up and what’s increasing, but what are they doing about it?” Francois said. “Are they applying creative destruction to reinvent parts of the business? Are they consolidating where possible?

“If you don’t demand transparency on both sides of the income statement, it really risks asking for more money to keep feeding the machine.” 

Sappey said after the meeting that her office will explore ways to allow more Aqua customers to provide their testimony. In addition, she said that she is considering writing to the auditor general to request a public audit in order to ratchet up the investigation of the proposal, as well as contact the state attorney general. 

“I’m thrilled with the turnout and I am even more thrilled with the number of people who were willing to testify, because it can be intimidating when you’re standing in front of someone with a  robe on,” said Sappey.  “It just goes to show how closely our residents are paying attention to this issue, how angry they are and how unfair this is. This comes down to several different things, but it comes down to fairness aspect. They are making their profits on the backs of our working people, our small businesses and our retirees.”

Chiodo and Arnold will review the written and oral testimonies from the hearings and render a recommended decision in late November. Subsequently, the five members of the PUC will review Chiodo and Arnold’s decision. 

The PUC’s final decision on Aqua’s proposed rate increase is due on Feb. 22, 2025. 

To contact Staff Writer Richard L. Gaw, email [email protected].