Recently, many Indian Creek Valley Water Authority (ICVWA) customers opened their mail and found a “Rate Impact Notice” about possible future rate increases. Because it mentioned potential bill increases of more than 100% and was packed with formal agency language, some people understandably wondered if it was a scam.
It was not. It was part of a state review process to approve the proposed sale of ICVWA’s system to Pennsylvania American Water, a private, for‑profit utility.
Background on the sale
In 2025, ICVWA entered into an agreement to sell its system to Pennsylvania American Water for about $32 million. When private water utilities buy a public system, the cost of that purchase is often added to their rate base, meaning customers across their entire service area eventually pay for it through higher rates.
Under Pennsylvania law, before a sale like this becomes final, the Pennsylvania Public Utility Commission (PUC) has to review and approve the deal and the increase in rates proposed for the customer base. The PUC looks at issues such as whether the price is fair, how it could affect customers’ bills, and whether the public has been properly notified and given a chance to weigh in.
PUC must also follow certain procedures during its review processes. For example, notifying the public and allowing them the opportunity to join in as an official party to the proceedings and also hold a public input hearing. For the current stage in the approval process ICVWA was required to send out information about the future rate increases to all its customers in a document that looked like this letter:
This document is a “Rate Impact Notice.” This details Pennsylvania American Water’s proposed purchase of the Indian Creek Valley Water Authority (ICVWA) and potential price increases. For ICVWA customers, the notice shows possible monthly bill increases of over 100%. These are only estimates, but they give an idea of what could happen.
Ultimately, the PUC decides if only ICVWA customers or the larger rate base will pay for the system purchase. However, studies have shown that for‑profit water systems in Pennsylvania charge about 84% more than public systems — over $300 more per year for a typical household.
Pennsylvania law requires water companies to send these notices when rates could change. This helps keep customers informed during the approval process. All current customers should receive one.
As a result, customers in our area are being notified as part of that approval process. In this notice, ICVWA cites several reasons for the sale, including increased cost of operations, regulatory requirements, and concerns about “system maintenance and growth”. On the back, Pennsylvania American Water states how rates may increase after the sale:
In order to change rates, the company would have to request approval from the PUC through a “rate base case.” The PUC would conduct a formal review, evaluate the justification of costs, and provide an opportunity for public/customer input.
What’s next?
The sale is not final yet. It still needs approval from the Pennsylvania’s Public Utility Commission, a state government agency. In the legal case, all parties will likely attend a hearing, exchange “discoverable” documents or information, and submit legal briefs. In the legal case, the Pennsylvania Office of Consumer Advocate, Office of Small Business Advocate, and the Borough of Ohiopyle have filed as “Intervenors” in the sale. Per its website, the Office of Consumer Advocate “was established by the General Assembly in 1976 to represent Pennsylvania consumers in matters involving their utility service.”
What can I do?
1. Public Input Hearing
Importantly, there will be an opportunity to present testimony at a PUC public input hearing. The public input hearing will be held in the area where service is provided. Attendees can present testimony or just watch. In its letter, ICVWA says that a final closing date will be set (expected before the end of the year). When we learn of the public hearing date, Mountain Watershed Association will also post this information on social media.
2. You can also file a protest or a petition to intervene. This makes you a party to the case. By becoming a party to the case, you receive a copy of all materials, and you can take part in hearings. The docket number is A-2025-3055741.
To file a protest to intervene or a protest, you must file with the Secretary of the Pennsylvania Public Utility Commission at P.O. Box 3265, Harrisburg, Pennsylvania 17105-3265.
You also must provide a copy of this filing to the lawyer for Pennsylvania American Water at:
Adeolu A. Bakare, Esquire
McNees Wallace & Nurick, LLC
100 Pine Street
Harrisburg, Pennsylvania 17101
(717) 237-5290
abakare@mcneeslaw.com
3. Write to the PUC:
You can send a letter, announcing your support or objection, to the PUC at Pennsylvania Public Utility Commission, P.O. Box 3265, Harrisburg, Pennsylvania 17105-3265.
4. Reach out to the Office of Consumer Advocate
If you have questions or concerns about the application, or what is going on with the sale, you can also reach out to the Pennsylvania Office of Consumer Advocate. Here is the contact information:
Pennsylvania Office of Consumer Advocate
555 Walnut Street
5th Floor Forum Place
Harrisburg, PA 17101-1923
Toll Free: (800) 684-6560
Phone: (717) 783-5048
consumer@paoca.org
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Resources:
“PUC Announces Enhanced Public Notification and Review Standards for Acquisitions of Municipal or Authority-Owned Water & Wastewater Systems” Press Release, Pennsylvania Public Utility Commission, June 13, 2024. https://www.puc.pa.gov/press-release/2024/puc-announces-enhanced-public-notification-and-review-standards-for-acquisitions-of-municipal-or-authority-owned-water-wastewater-systems-06-13-24
Letter re: Rate Impact Notice – PAWC , Docket No. A-2025-3055741 (Pa. P.U.C. [Mar. 11, 2026]). https://www.puc.pa.gov/pcdocs/1917805.pdf
Pennsylvania Office of Consumer Advocate. Last Accessed: Apr. 13, 2026: https://www.oca.pa.gov/