HARRISBURG — The state Public Utility Commission has approved a rate increase for Pennsylvania American Water that includes a contribution to help low-income customers pay their water bills.

Pennsylvania American, which provides water service for thousands of homes and businesses in and around Butler County, asked the PUC for a rate increase in April.

That increase would have generated about $58 million in revenue for the company.

The PUC, however, approved a lower increase of $3.16 for those customers using 4,200 gallons per month, raising their per month bill to $46.14. This increase should generate about $30.75 million in annual revenue.

The PUC also ruled Pennsylvania American must increase its annual contribution to the H2O Help to Others Program, which is funded through a match of customer and employee donations.

The PUC rate settlement calls for the water company to increase its match from $150,000 to $250,000 annually.