Lock Haven looking at water rate increases

LOCK HAVEN, PA – It’s been since 2013 that customers of the Lock Haven water system have seen a rate increase, but that could soon change. City Council Monday night gave its approval to a contract with a New York state financial consulting firm to carry out a water rate study.

Raftelis Financial Consultants of Latham, NY was hired by the city to conduct the study, the cost not to exceed $33,700.

Per information from Raftelis as part of its proposal, the city expects to incur significant costs for system upgrades at the Keller and Ohl Reservoirs. The study will provide the revenue needs to ensure its user rates are sufficient to cover future costs. The study will also evaluate the existing rate structure to determine if rates are sufficient to recover the cost to serve major customer classes; Raftelis listed these as non-profit customers inside the city; outside retail customers; and municipal customers.

According to information from Monday’s council meeting, the city system serves 3,258 customers in the greater Lock Haven area including the city and Wayne, Castanea and Allison Townships, with a service area population of 9,750. Lock Haven also provides water to the Suburban Lock Haven Water Authority that serves Flemington and Mill Hall boroughs and Bald Eagle, Lamar and Woodward Townships and a portion of Lock Haven; a population service area similar to those served by the city system.