Nov. 8--While Pennsylvania American Water Co. customers in Luzerne County will see a 6 percent rate hike next year, customers of United Water Pennsylvania Inc. could face an even greater increase.

The state Public Utility Commission on Friday announced it would investigate a proposed 16.2 percent rate increase for United Water's 56,000 customers, including 3,294 in the Back Mountain area.

Under the company's proposal, the average yearly residential bill would increase $64.20 to $460.32 for customers who use 54,000 gallons annually. That's the average usage, according to the company, and equates to about 18 cents more a day.

The commission voted 4-0 to investigate the proposed increase that would increase revenues $4.9 million. The proposal will be assigned to the Office of Administrative Law Judge for public hearings. A recommendation will be announced before June 15.

United Water Pennsylvania Inc. serves portions of Columbia, Dauphin, Cumberland, Perry, York, Luzerne, Wyoming, and Schuylkill counties.

Company spokesman Bob Manbeck pegs the primary reasons for the rate request on an expected increase in electrical power costs, due to the expiration of PPL rate caps on Jan. 1, the $14 million invested in capital improvements the past three years and higher costs associated with chemicals used to treat water.

He said there's been a nearly 70 percent increase in the cost of water treatment chemicals since 2006, which was when United Water last filed for rate relief.

Power costs are the second largest expense for the water company and electricity is used at the company's five water treatment centers and well pumping stations, of which 11 are in Luzerne County.

In Luzerne County, United Water serves portions of the Dallas, Shavertown and Harveys Lake areas.

The commission approved a settlement that will result in bills for Pennsylvania American Water Co. customers rising, but at half the rate of the company's original request of 12.5 percent. The new rates will increase revenue by $30.75 million.

The average monthly bill for a Pennsylvania American Water Co. residential customer using 4,200 gallons of water a month will increase by $3.16 from $42.98 to $46.14. The original proposal increased rates by $5.92 a month.

When the company filed its original rate request, a spokeswoman said the request "reflects the investments we've made in the system" since the last rate increase went into effect in 2007. Since that time, $51 million has been invested in Luzerne County alone, said Susan Turcmanovich. Among the work: new water mains, pump stations and hydrants. According to the company's filing with the PUC, the proposed increase also is necessary to obtain funds needed for production costs and post-employment benefits.

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