Pittsburgh, PA – Today, Pittsburgh Water submitted a rate filing with the Pennsylvania Public Utility Commission (PA PUC) reflecting an $84.4 million rate increase request over two years to fund additional investment for water, wastewater conveyance, and stormwater system improvements through 2027. The request provides essential funding for mandated infrastructure improvements, meets more stringent environmental and regulatory requirements, addresses increasing operating costs related to inflation, and expands capacity to perform needed system maintenance and operations.
Pittsburgh Water is making an unprecedented level of investment in the water systems that serve Pittsburgh residents and surrounding communities. Since 2018, the utility has invested more than $898 million to renew critical drinking water infrastructure, remove lead service lines, construct new stormwater infrastructure, and rehabilitate century old sewer mains. The rate request, if approved, will continue to advance the projects that are essential to the health and well-being of the communities served.
“As a publicly owned and operated water utility, every dollar we receive from customers is invested into the water systems we rely on each day,” said Will Pickering, Pittsburgh Water’s Chief Executive Officer. “We never lose sight that this is your water and we’re dedicated to investing your rate dollars responsibly.”
Commitment to Affordability
As part of this rate filing, Pittsburgh Water is proposing additional enhancements to support our most vulnerable customers. These include forgiving past-due balances provided the customer consistently makes on-time payments to keep their account current; extending the recertification requirement for the Bill Discount Program from two years to five years for customers on fixed incomes; automatically enrolling customers in the Bill Discount Program when they receive a Hardship Grant; and, establishing the Line Repair and Water Conservation Program, introduced to customers as a pilot program in 2024, as a permanent program within our customer assistance offerings.
Pittsburgh Water’s Line Repair and Water Conservation Program provides income-eligible customers with in-home plumbing repairs, helping customers to reduce water loss from leaking pipes and old, inefficient water fixtures that can cause bills to be unnecessarily high. The services are performed by a certified plumber and include leak repairs on exposed plumbing and installing water efficient fixtures such as toilets, faucet aerators, and showerheads. The program also emphasizes educating customers about water conservation practices. Since launching the program last year, Pittsburgh Water has helped 212 customers who, on average, have seen a 19% reduction in water usage once the repairs are made.
Pittsburgh Water remains committed to affordability, including recently updating its Household Affordability Analysis, and will continue to offer the expanded customer assistance program benefits implemented in 2024. These program enhancements increased income eligibility for the Bill Discount Program to 200% of the federal poverty level (FPL) and established two $450 grants through the Hardship Grant Program, one for drinking water customers and another for wastewater conveyance customers.
More than 8,000 customers are currently enrolled in the Bill Discount Program and since 2018, we have provided grants to more than 2,804 households totaling over $1,025,123. Under the proposal considered by the PA PUC, the typical Bill Discount Customer will receive a discount of nearly $68 per month in 2026 and approximately $75 per month in 2027.
Customer Impacts
If Pittsburgh Water’s rates are approved as requested, the total monthly bill for the average residential customer receiving water, wastewater conveyance, and stormwater services would increase by approximately $22.75 per month in 2026 and by approximately $12.50 in 2027. The total bill for the typical residential customer enrolled in the utility’s Bill Discount Program would increase by approximately $5.40 per month in 2026 and by approximately $5.50 in 2027.
Included in the Rate Filing
The rate filing will continue the stormwater program incentives available to residential and non-residential customers, including the stormwater credit program and the one-time $40 rain barrel credit available to residential customers. It also includes a 2.5% increase to the Distribution System Improvement Charge (DSIC) originally approved in 2020 and will begin assessing the PENNVEST (PA Infrastructure Investment Authority) Charge to pay back low interest loans from PENNVEST that provide essential capital and partially fund Pittsburgh Water’s capital program. Under the proposal, these PENNVEST charges, previously incorporated into base rates, will now be identified separately, providing greater transparency to customers related to repayments for debt service associated with our capital investment.
Pittsburgh Water is also proposing to remove the minimum allowance charge in 2027. If approved, customers would be charged a monthly service fee per meter size, unrelated to water usage, to recover customer-related costs and a volumetric charge to recover actual volume of water used. As part of this proposed change, additional bill credits would be available for income-eligible customers.
Ongoing Capital Investment
To keep rates as low as possible, Pittsburgh Water will continue to aggressively pursue grants and low-interest loans from state and federal funding partners. Since 2018, we have received more than $877 million in low-interest loans and grants from PENNVEST to support our capital program.
This funding provides essential financial resources to rebuild large components of our water pumping and distribution system, improve public health by replacing lead service lines, replace water mains, and rehabilitate aging sewer pipes. The grants and low-interest loans from state and federal funding partners are projected to save ratepayers $945 million over time in comparison to traditional financing.
PA PUC Rate Setting Process and Oversight
The PA PUC will evaluate the request, and if approved, will continue the investment that is needed to improve the safety and reliability of our water systems. The review process can take up to nine months with hearings later this year and the Commission likely making a determination on the request in early 2026.
Pittsburgh Water ratepayers will have an opportunity to participate in the PA PUC’s review of the proposed rates. In the coming months, the PA PUC will hold public input hearings on the proposal. Pittsburgh Water will provide public testimony to justify and explain the requested rates. The PA PUC’s Bureau of Investigation and Enforcement, Pennsylvania Office of Consumer Advocate and Office of Small Business Advocate will also review and comment on the request. The PA PUC may elect to change the rates included in the rate filing. For more information on PA PUC oversight and actions customers can take in response to the rate request, please visit www.pgh2o.com/customer-rights.
For more information about the rate filing, please visit www.pgh2o.com/ourwaterfuture. Beginning June 4th, customers will receive a detailed explanation of the rate proposal in their bill.
