Pennsylvania Public Utility Commission s2

PENNSYLVANIA PUBLIC UTILITY COMMISSION HARRISBURG, PENNSYLVANIA 17105

APPLICATION OF Public Meeting July 25, 2007 PENNSYLVANIA-AMERICAN JUL-2007-OSA-0162* WATER COMPANY FOR A-212285F0136 APPROVAL OF A CHANGE OF CONTROL TO BE EFFECTED THROUGH A PUBLIC OFFERING OF THE COMMON STOCK OF AMERICAN WATER WORKS COMPANY, INC.

CONCURRING AND DISSENTING JOINT STATEMENT OF COMMISSIONER TERRANCE J. FITZPATRICK AND COMMISSIONER KIM PIZZINGRILLI

We concur in part, and dissent in part, with regard to the resolution of the issues in the Joint Motion of Chairman Holland and Vice Chairman Cawley.

First, we concur that Tariff Rule 27 in PAWC’s tariff does not preclude the main extensions proposed in the non-unanimous settlement. As PAWC argues in its exceptions, neither Tariff Rule 27 nor the regulations upon which it is based are intended to apply to situations in which PAWC decides, as a matter of management discretion, to extend its mains. The ratemaking implications of this decision should be addressed in future rate cases.

Second, we disagree with inserting into our decision a condition that PAWC will not adversely affect the pension, health care, and other benefits of PAWC’s retirees. This is clearly an area of management discretion into which this Commission is not authorized to intrude. While we share the concern over PAWC’s retirees, this does not justify an action of the Commission that exceeds its authority. Accordingly, we respectfully dissent from this aspect of the Joint Motion.

DATE: July 25, 2007

______TERRANCE J. FITZPATRICK KIM PIZZINGRILLI COMMISSIONER COMMISSIONER