| BCWSA Comment on Newtown Artesian Proposed Rate Increase |
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In 2008, The Philadelphia Water Department (PWD) outlined a four year rate increase schedule to Bucks County Water & Sewer Authority BCW&SA in excess of 40% over the years 2009 through 2012. In turn, the Authority raised rates by only 24% in the hopes that negotiations with the City would result in a reduced rate. The Authority was hoping to not have to pass on the additional increase to our customers. Unfortunately, negotiations with the City were fruitless, and the arbitration proceedings are still pending. In 2011, PWD, over a full year in advance of the 2008 rate schedule expiration, increased rates approximately 100% over and above the highest rate projected in the 2008 projection. As a result BCW&SA has had to calculate a new revenue requirement for the additional cost. Using the updated PWD data, the BCW&SA wholesale rate moved from no monthly minimum and $2.68 per 1000 gallons to the 2011 rate of $540.92 per month minimum and $3.44 per 1000 gallons. This is an increase of 28% overall.
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