Regarding my call with Senator Schwank's office this afternoon... I will start with the take-aways and what we need to do:

• Residents are encouraged to write a letter to the PUC regarding their water bill (I'm awaiting feedback on guidelines for what should be included with the letter - we were told we cannot have a uniform letter so I will find out what is needed for each individual and we will go from there)

• If you are having trouble with your meter, need it replaced and American Water is pushing back please file an informal complaint with the PUC - they are able to resolve those types of issues pretty quickly at the moment (I am guessing because it's not rate related

• If you cannot afford your bill, please call American Water and request information on their assistance program. Part of their recent agreement was to expand this program for consumers

I have reached out to the township to see if they can provide a forum for us to meet and go through filing an informal complaint with the PUC for those that need assistance so hopefully more to come on that soon.

Senator Schwank's office reached out to American Water about the bills provided and American Water's response was that they could set up a local event to help residents understand the rates, etc. This obviously does not address the problem. What I learned from our meeting was that the sale of the water treatment plant benefitted Exeter Township in the sum of around $92M which was a sale on presumably bad advice.

2016 Act 12 (https://www.legis.state.pa.us/.../legis/li/uconsCheck.cfm...) allowed small municipalities to sell off water utilities in an effort to bring in corporations who could afford to improve the systems (paraphrasing). As a result, our township, among others in the state, sold their water treatment plant to American Water and are now essentially stuck in this predatory pricing debacle. Senator Schwank's office is working with the Consumer Advocates group to propose new legislation to prevent predatory pricing in the future and undo some of the issues we are experiencing as a result of Act 12. They have a meeting set up in May to discuss a path forward, though not guaranteed because as legislation it would need to be approved.

Understandably, this does not address everyone's immediate issue with high bills which is why I noted the take-aways first. If we are going to do something, we need to do it as a mass and the first step is to go to the PUC with complaints - the more the better as i t is believed that American Water will be requesting another rate increase in the next year (or two) and in order to put a stop to this they will need all of our pushback.

Finally, I noted the expansive yet unreliable billing period of 28-35 days which causes a lot of hardship due to the inflated bills at the 35 day mark. This is something they are going to look into as well, hopefully to determine if this billing method is acceptable (which we can all agree that it is not). I also mentioned that a lot of our residents use bottled water. Under a separate post I am going to ask for some information with regard to how much you spend per month on bottled water because I think that is another important point to make - that the residents are paying astronomical prices for water that they're not even drinking. Senator Schwank's office did note that our water comes from a combination of well water and the Reading Water Authority. They may look further into the water quality despite being told it's acceptable drinking water, it has been well noted that it doesn't smell or taste good and many residents opt to purchase bottled water to consume instead.

Please let me know if you have any questions or need help with any of the above. I understand this is frustrating and isn't an instant fix but the more persistent we can be, hopefully the quicker we will find a solution.

I received a response from Rep. Mark Gillen today:

Thank you for reaching out to me regarding increased water bills for the Exeter Township community. I have heard similar complaints from other Pennsylvania American Water customers, and I appreciate your giving me the opportunity to respond.

On December 8, 2022, the Pennsylvania Public Utility Commission (PUC) approved a joint settlement agreement granting Pennsylvania American Water new water and wastewater rates that became effective January 28, 2023. As a regulated utility, Pennsylvania American Water is not free to set its own rates. Furthermore, its rates must be set through an extensive review and approval process at the PUC. These new rates established by the PUC reflect the more than $1 billion in water and wastewater system investments Pennsylvania American Water will be making through the end of 2023 to continue providing safe and reliable service.

The company originally filed its rate request in April 2022 with the PUC, seeking to adjust its rates by approximately $173.2 million for over $1 billion in water and wastewater system investments the company will make through 2023 to continue providing safe and reliable service. Ultimately, after their full investigation, the PUC determined that the following increases for water and wastewater was appropriate:

• The average monthly residential water bill (based on 3,212 gallons per month) changed by about $9 per month, from $60.48 to $69.24

• The average monthly residential wastewater bill (based on 3,212 gallons per month) changed by about $30 per month, from $76.65 to $106.65.

The service that Pennsylvania American water provides must be safe, reliable for fire protection, and resilient in the face of floods, droughts, and other weather-related risks. At the same time, it also must be affordable, which is why numerous financial assistance programs exist. Being sensitive to the impact this rate adjustment will have on its customers and to continue addressing affordability, the agreement includes an expanded, three-tiered approach to the company’s current low-income discount program. Assistance is available to income-eligible customers through its H2O Help to Others Program, as follows:

H2O Program - Water Assistance

• Grants of up to $500 per year to be used toward household’s water bills

• A 40-80% discount on the monthly service fee and 25-80% discount on the monthly volumetric charges (see Discount Program talking points for details)

• Water-saving devices and education

H2O Program - Wastewater Assistance

• Grants of up to $500 per year to be used toward household's wastewater bills

• A 30-80% discount on the total wastewater charges (see Discount Program talking points for details)

Effective January 28, 2023, Pennsylvania American Water’s discount program has been expanded to include three tiers of discounts depending on household income. For more information on the Federal Poverty Level for 2023, refer to this link.

Water Discount Tiers and Amounts

Tier

Federal Poverty Level

Water Service Charge Discount

Water Volumetric Charge Discount

Savings Off the Average Monthly Water Bill*

1

0-50%

80%

80%

$55.39

2

51-100% FPL

65%

50%

$37.25

3

101-150% FPL

40%

25%

$19.93

*Based on Rate Zone 1, 5/8” meter and 3,212 gallons of usage per month. The amount may vary based on rate zone and usage.

Wastewater Discount Tiers and Amounts

Tier

Federal Poverty Level

Wastewater Total Bill Discount

Savings Off the Average Monthly Wastewater Bill*

1

0-50%

80%

$88.18

2

51-100% FPL

55%

$65.09

3

101-150% FPL

30%

$42.00

*Based on Rate Zone 1 metered residential rates and 3,212 gallons of usage per month. The amount may vary based on rate zone and usage.

Poverty Guidelines | ASPE