Nov. 7--The state Public Utility Commission approved a settlement Friday granting a 6.6 percent rate increase to the region's largest water utility.

The action will provide $30.75 million more in annual revenue to Hershey-based Pennsylvania American Water Co. Average residential bills for customers using 4,200 gallons of water monthly will increase by $3.16 to $46.14, the PUC reported.

In April, Pennsylvania American filed a request for a 12.5 percent, $58 million increase. A company spokesman said the utility had spent $310 million on improvements since its last adjustment -- a 9 percent increase in 2007.

The settlement, which was reached after objections by the Office of Consumer Advocate and other parties, compels the company to resolve consumer issues that were brought up at public hearings on the rate hike. Pennsylvania American also will increase its funding for a program that provides grants, discounts and water-saving training and education to customers and the company cannot seek another rate increase until April 21, 2011.

The utility, a division of New Jersey-based American Water, has 635,000 connections in Pennsylvania, including about 135,000 regionally.

It serves about 2 million customers in the state.

Contact the writer: jhaggerty@timesshamrock.com

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