Lancaster water customers outside the city limits are already seeing a major rate increase after Pennsylvania regulators approved a revised package that raises the utility’s annual revenue by up to $4.7 million. The new tariff took effect June 29, turning a proposed billing shock into a very real one for households and businesses across parts of Lancaster County.
The latest attention came from a CBS Boston report featuring WBZ-TV’s Logan Hall in Lancaster. The headline describes the change as a 30% price hike, but the fine print matters: the increase applies to Lancaster City Water customers whose properties are outside Lancaster city limits.
The Increase Covers Lancaster County Customers Outside City Limits
According to Lancaster City Water, the Pennsylvania Public Utility Commission approved the rate request on June 4, and the new rates became effective June 29. Customers inside the city are not part of this specific increase, which covers service areas including Millersville and several surrounding townships.
The final numbers are lower than the city’s original request, but they still amount to a hefty jump. In its June tariff filing, the Bureau of Water said the revised supplement would increase jurisdictional rates by $4.7 million, or 28.9%, over existing rates for all customer classes.
The Pennsylvania Public Utility Commission order rejected the city’s original tariff supplement, finding those proposed rates “unjust, unreasonable, and unlawful,” then approved a negotiated settlement with modifications. The order required the final tariff to keep the annual increase within the $4.7 million cap and allowed the new rates to take effect for service rendered on and after June 29.
City Cites Infrastructure And Rising Operating Costs
The city said in its rate-case materials that the increase is intended to help pay for major capital improvements and recover higher costs for wages, benefits, insurance, treatment chemicals, testing, debt service and other operations. Lancaster also said stronger water-system finances would help support future borrowing for additional improvements, according to the city’s rate increase FAQ.
For context, Lancaster’s original filing sought a $7 million annual increase. The city said a typical residential customer using 4,500 gallons per month could have seen a bill rise from $29.53 to $38.32, or 29.8%, under that full request; those figures described the proposal before the PUC’s review and settlement, not necessarily every customer’s final bill.
The city’s current rate sheet lists separate customer and consumption charges based on meter size and water use, so the impact will vary from one account to another. Customers trying to match the increase to their own bills can compare the effective June 29 rates through Lancaster City Water’s online rate information.
