On Aug. 12, Spring-Ford Area High School hosted two hearings addressing proposed water and sewer rate hikes by Aqua, a major corporate utility, according to The Mercury. More than 120 attendees voiced their concerns, with most opposing the proposed increases.
Administrative judges Gail Chiodo and Alphonso Arnold III led the hearings, and officials from Aqua and the Pennsylvania Consumer Advocates office were present. While the panel was allowed to question speakers, they largely refrained from doing so.
The proposed increases would see residential water bills rise by 19.9%, translating to an additional $16.10 per month or $193.20 annually, per the report. Sewer bills would increase by 18.4%, adding $14.92 monthly or $179.04 annually.
If approved, these hikes would boost Aqua’s water revenue by approximately $112 million and wastewater revenue by $14.6 million, marking significant percentage increases for both sectors, according to the article.
In previous years, the Pennsylvania Public Utility Commission (PUC) has partially approved rate hikes from Aqua. State Rep. Joe Ciresi, D-146, and State Sen. Katie Muth, D-44, attended the hearings, questioning the fairness of the proposed hikes and highlighting the burden on consumers. Ciresi criticized the situation, referring to it as a “Privilege to Pee” – referencing a song from the musical “Urinetown” – and expressing frustration over the rising costs.
“When is enough enough?” Ciresi asked the judges, per the report. “At what point can we no longer afford the ‘Privilege to Pee?’
Several residents expressed their discontent with the proposed increases, arguing that Aqua’s actions amounted to price gouging, per the article. Joe Gardocki highlighted Aqua’s stock price surge and executive salary hikes, while Frank Kennedy compared sewer rates between different locations, noting the high costs in his new area in Schwenksville versus North Wales Borough. Others, like Daniel Almeida, felt the proposed increases were excessive.
“This rate increase is too much too soon,” said Almeida.
The sale of the Limerick sewer system to Aqua in 2018 for $75 million was a key topic. Critics like Don Crawford and Todd Kretke argued that the sale led to inflated rates, suggesting the township should have retained ownership, per the article. Limerick Township Manager Dan Kerr defended the sale, asserting it was financially beneficial and had deferred significant expenses.
Per the report, Kerr said the treatment plant and sewer lines needed work and the township was forecasting raising rates between 50 to 60 percent between 2014 and 2022.
“My rates doubled in five years, that’s pretty remarkable,” said Kretke. “The township sold us down the river in order for us to pick-up the tab.”
Some residents also criticized Aqua’s method of billing for sewer services based on water usage rather than actual wastewater output. This approach led to perceived inequities and excessive charges, prompting residents like Erika Spott and Susan Miller to question the fairness of the billing system, according to the article.
“How does Aqua even know how much sewage is coming from my home, it’s just a guess,” said Susan Miller, of Neiffer Road.
Despite the opposition, there were supporters of Aqua’s rate increase. Skelly Holmbeck from the Water Resources Association of the Delaware River Basin argued that infrastructure improvements, including replacing aging water lines and addressing environmental contaminants, justified the increase, according to The Mercury. Aqua’s statement echoed this, emphasizing the need for infrastructure upgrades and compliance with new regulations.
“We’ve been starving our infrastructure. Our organization is in support of Aqua in their work,” Holmbeck said in the article.
Bernard Dagenis of the Main Line Chamber of Commerce and Jenifer Fields, a former Pennsylvania DEP employee, supported Aqua, highlighting the thorough regulatory process for private utilities and the need for investments in infrastructure, per the report. Mark Backer also acknowledged the issues with public systems but criticized the sale of assets to cover expenses.
Senator Katie Muth condemned the rate hike request as corporate price-gouging and argued that Aqua’s financial reports showed rising revenues and decreased operational costs, while ratepayers faced ever-increasing bills. She criticized Aqua for utilizing tax loopholes and emphasized that the PUC’s role is to prevent such abuses, according to the article.
The final decision on Aqua’s rate increase request will be made by the PUC by February 22, 2025. The outcome will determine if the proposed hikes are approved or if alternative measures will be taken to address the utility’s financial needs while considering the concerns of the affected consumers.
