Help on the way for Alcosan customers struggling with rate increases

Allegheny County families struggling to keep up with rising sewer fees could save hundreds of dollars next year under a proposed assistance program.

The county Sanitary Authority intends to launch a customer assistance program Jan. 1 that could cut sewer fees in half for some families, said Greg Jones, the Alcosan board member heading up development of the program.

Alcosan will finalize details in the next two months, but Jones said families making 150 percent of the poverty level will be eligible.

The federal poverty level for a family of four is $24,300, so a family of four making $36,450 would be eligible.

Jones hopes the subsidy will equal about half the average bill and total $200 to $300 per year.

The authority's board Thursday approved a contract for administration of the program by Dollar Energy Fund Inc., a national company that operates similar assistance programs for Columbia Gas, Pennsylvania American Water, Peoples Natural Gas and FirstEnergy/West Penn Power.

“We've been advocating for them to create this program for a long time, and we're excited that they're finally awarding a contract and getting this program started,” said Aly Shaw, an organizer with the Clean Rivers Campaign.

Alcosan raised rates 11 percent this year, the third annual increase in a row. A fourth 11 percent increase is planned for 2017. Average annual charges will jump from about $376 this year to about $417 next year. In 2013, before the authority started increasing rates, average customers paid about $261 a year.

“That's a real impact for some ratepayers,” Jones said. “This is something that can at least relieve some of that burden.”

The rate increases are needed to pay for a $2 billion to $3 billion federally mandated project to cut the 9 billion gallons of wastewater and stormwater that overflow into area rivers each year to 4 billion to 5 billion by 2026. Alcosan is in talks with the Environmental Protection Agency and the Department of Justice to update the project and reduce the cost, the authority said in statement Friday.

Jones said once customers enroll in the program they must renew every year to participate. Enrolling will be easy, Jones said. Customers will have to submit recent pay stubs, tax returns or show that they have been accepted to similar assistance programs for other utilities.

At the beginning of each year, Alcosan will decide what percentage of the average sewage fee it will subsidize. Jones said eligible customers will receive the same subsidy regardless of their individual bills.

Jones said the program could cost Alcosan $500,000 to $1 million. The authority will pay for the program with savings it generated through refinancing bonds. Alcosan refinanced $195 million in old debt last year and is expected to save about $27 million.

Aaron Aupperlee is a Tribune-Review staff writer. Reach him at 412-320-7986 or aaupperlee@tribweb.com.