Commission Chairman Stephen M. DeFrank justified the increase by highlighting the company’s track record in stabilizing struggling systems, specifically citing successful interventions in Dimock and the acquisition of the East Dunkard Water Authority. The ruling aims to balance these infrastructure investments with ongoing affordability concerns for the utility’s 2.5 million customers.

While the rate adjustment was initiated before Governor Josh Shapiro issued his recent principles regarding utility affordability, the company has signaled its intent to coordinate with the Governor’s office on future filings. Pennsylvania American Water officials are currently evaluating the commission's full order to determine the specific impact on individual residential bills and the timeline for implementation.