PUC Approves Settlement for Lower Than Requested Rates for Customers of Lancaster Bureau of Water Outside the City of Lancaster

PUC Approves Settlement for Lower Than Requested Rates for Customers of Lancaster Bureau of Water Outside the City of Lancaster

Published on 6/4/2026

Filed under: Water and Wastewater

HARRISBURG - The Pennsylvania Public Utility Commission (PUC) today approved a joint settlement that will result in a smaller overall rate change in annual revenues for the City of Lancaster - Bureau of Water (Lancaster) than was initially proposed by the utility for customers located outside of Lancaster's corporate limits.

The PUC has jurisdiction over Lancaster's water service provided to customers located outside the City of Lancaster. In addition to the City of Lancaster, Lancaster's water system currently serves nine surrounding municipalities, including all of Millersville Borough and the townships of Lancaster, Manheim, Pequea and West Lampeter, as well as portions of East Hempfield, East Lampeter, Manor, and West Hempfield townships.

Joint Settlement

The Commission voted 5-0 to adopt a joint settlement approving a $4.7 million (20.3%) change in annual revenues, which is lower than Lancaster's original request of $7 million (30.2%).

As part of the settlement, the total monthly bill for a residential customer using 4,500 gallons per month with a 5/8-inch meter will increase by $5.91 from $29.53 to $35.44 (20%).

The joint settlement was reached among the utility, the Commission's independent Bureau of Investigation and Enforcement (I&E), the Office of Consumer Advocate (OCA), and the Office of Small Business Advocate (OSBA). The Commission sought comments during two in-person public input hearings and two telephone public input hearings held in December 2025.

Consumer Enhancements

Additionally, the Settlement provides for enhancements to service and low-income customer education, outreach and evaluation, highlighted by the following:

• Include information about the Community Action Program (CAP) on the company website for customers.
• Assess a discount billing option for low-income customers, an arrearage management plan for residential customers; and use of the Asset Limited, Income Constrained, Employed (ALICE) tool provided by the United Way for collecting and tracking data for low-income customers.
• Actively review customer accounts to identify late payments of payment plans in default and proactively reach out to those customers to advise them of potential options that may be available to assist them with payment, such as providing information about CAP.

About the PUC

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

Visit the PUC's website at https://www.puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on X, Facebook, LinkedIn, Instagram and YouTube. Search for the "Pennsylvania Public Utility Commission" or "PA PUC" on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Contact:

• Denise McCracken
  Senior Communications Specialist
  717-787-5722
  [email protected]