Pittsburgh, PA - Today, the Pittsburgh Water and Sewer Authority (PWSA) announces that changes to water, wastewater conveyance rates and the stormwater fee were approved by the Pennsylvania Public Utility Commission (PUC) during their January 18th public meeting. The new rates will go into effect next month.  This is the final step in the ratemaking process that started with PWSA’s rate request submitted on May 9, 2023.

“The new rates approved by the Commission balance PWSA’s immediate need to protect public health by investing in our aging water infrastructure, and the need to provide assistance for customers with affordability concerns,” said PWSA CEO Will Pickering. “I want to thank the Commissioners and all of the parties involved in our rate case for their efforts to bring us to this positive resolution,” he continued.

As a publicly owned and managed water, sewer, and stormwater authority, every dollar we receive from ratepayers is reinvested back into our infrastructure and we never generate a profit or pay investors. The improvements we are making today will provide current and future generations of customers with safe, high-quality water services for years to come.

Expansions to Customer Assistance Programs

Our Customer Assistance Programs, first established in 2018, are a permanent part of our rate structure and benefit customers struggling to pay their water bill. PWSA is a national leader for providing customers with multiple avenues for assistance and today’s approval continues to demonstrate our leadership.

A benefit brought forward in our original May 9th proposal increases income eligibility for the Bill Discount Program from 150% of the federal poverty level to 200% - making this essential program available to more customers. The current 50% volumetric discount for very low-income customers will increase to 60% and the monthly credit for those enrolled in the Arrearage Forgiveness Program will increase from $30 to $40 provided customers make on time payments.

Customers will also benefit from an expansion of our Hardship Grant Program. It now includes two separate annual grants – one to be distributed to eligible drinking water customers and another to eligible wastewater (sewer) customers. Customers receiving both drinking water and wastewater services from PWSA can benefit from both grants simultaneously. The maximum grant will increase from $300 to $450 and applied as a credit to your PWSA bill. 

For additional information about our Customer Assistance Programs, please visit www.pgh2o.com/CAP.

Stormwater Incentives, Credit Program, and Ongoing Community Education

Customers can also receive a one-time $40 rain barrel credit. Installing a rain barrel on your property is a simple solution to capture and repurpose the water to maintain your lawn or garden. There will also be expanded community outreach to further educate customers on the need to manage stormwater, collaboration with Pittsburgh Public Schools to identify stormwater mitigation efforts, and broader education about the steps Pittsburgh residents and property owners can take to receive a stormwater credit to reduce their stormwater fee. For additional information about the Stormwater Credit program, please visit www.pgh2o.com/stormwater-credit.

PENNVEST Recovery Charge

In 2025, PWSA will implement a new charge that will appear on customer bills to pay low-interest PENNVEST loans used to finance the construction of needed infrastructure improvements. The recovery charge will begin in 2025 and will only include loans closed on or after 2025. Clearly identifying this expense improves transparency about how we are using ratepayer dollars to fund infrastructure projects, like our Water Reliability Plan.

How Will Your Bill Change?

The new rates, including the stormwater fee, will generate an additional $36,000,000 in revenue this year. This amount is $10.8 million less than PWSA’s original request for 2024 and is 37% of what PWSA originally requested in the three-year proposal initially brought forward for 2024 through 2026.

With the approval of the new rates, the monthly PWSA bill for a typical residential customer using 3,000 gallons of water per month and charged the base rate for stormwater, would increase by $13.84. For the typical residential customer enrolled in the Bill Discount program, their monthly bill would increase by $5.80. Customers can also expect the Distribution System Improvement Charge or DSIC to remain at 5%.

Many improvements are underway and there are significant accomplishments to highlight from 2023. We celebrated the replacement of our 10,000th lead service line and are well on our way to removing all lead service lines from our system by 2026. With lead levels at record lows and water quality meeting or exceeding all water quality regulations our customers can Trust the Tap knowing that the drinking water reaching their home or business is safe.

Since 2022, we have made continuous progress on our Water Reliability Plan – a series of once-in-a-generation projects to transform Pittsburgh’s water infrastructure. With the first phase of projects complete and the second underway, we will break ground on the Highland Reservoir Pump Station this spring. As we complete more of these projects, customers will experience fewer service disruptions like water main breaks or boil water advisories.

Funding from state and federal sources is helping to expedite these projects and reduces the burden on ratepayers. In 2023, we secured substantial funding, including a $52 million federal loan for Water Reliability Plan projects as well as $102 million in low interest loans and $22.2 million in grants from state and federal sources to remove lead service lines and support the replacement of aging water and sewer pipes. To keep rates as low as possible, we will aggressively pursue every possible source of funding.

PWSA remains steadfast in its mission, continuously striving to protect public health by upholding the highest standards of water quality, safety, and service excellence for the vibrant communities we serve. For more information on the new rates approved today and our plans for ongoing investment in the water systems you rely on, please visit www.pgh2o.com/ourwaterfuture.