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Accounting Change Precipitates Rate Increase
Publication year - 1995
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.1002/j.1551-8833.1995.tb06355.x
Subject(s) - allowance (engineering) , revenue , business , accounting , commission , payment , tariff , finance , operations management , economics , international trade
In 1992, Pennsylvania‐American Water Company (PAWC) filed with the state public utility commission (PUC) a tariff supplement designed to increase annual revenue by about $18.7 million. This amount included a claim of $5 million for recovery of expenses previously incurred in providing “OPEBs” (benefits other than pensions‐‐i.e., health care and life insurance) to retired employees. In 1993, as part of a $9 million allowance to PAWC for an increase in annual operating revenues, the PUC also approved the OPEBs claim subject to the establishment of an irrevocable trust for payment of employee benefits.