Water bills in Philly might rise soon, as department requests rate increase

Philadelphia residents may see their water bills rise over the next two years.

The Philadelphia Water Department on Tuesday filed a request with the city’s Rate Board for water, sewer and stormwater rate increases later this year and again in 2024, the city announced Wednesday in a statement.

If approved, residents would see a nearly 12% increase beginning Sept. 1. The city estimates that would amount to additional charges of about $8 a month per customer, bringing the average monthly bill to $77.

Then, as of Sept. 1, 2024, rates would increase again, this time by more than 8%, or about $6 more a month per customer. That would bring the average residential bill to approximately $84, according to the city.

“Without these rate changes, the Philadelphia Water Department will struggle to make needed investments in critical infrastructure, including replacing aging water mains, upgrading water treatment plants, building storage for clean water, and sustaining the pumping systems needed to deliver and treat water,” Philadelphia Water Department Commissioner Randy E. Hayman said in the statement.

The rate change request comes at a time when people are already getting hit hard by rising utility costs.

Heating bills are up across the board this winter. Compared to last winter, natural gas customers are expected to spend at least 25% more to heat their homes, electric customers 11%, and fuel oil customers 45%. In the Philadelphia region, Peco raised energy costs nearly 16% in December. Several other electric companies in the region also reported rate increases.

Water rates have increased sharply elsewhere in the commonwealth, as well. The increases are the newest price hikes facing customers of private water companies, which are modernizing aging infrastructure, but also spending millions to acquire public water and wastewater systems following the passage of a 2016 state law allowing public water systems to be consolidated.

Starting Saturday, customers of the state’s largest private water utility, Pennsylvania American, are set see their water bills rise about 14.5%, nearly $9 a month on average, while wastewater rates jump 39%, about $30 a month. Pennsylvania American serves 760,000 customers across the state, including customers in Bucks, Montgomery, and Chester Counties.

In Philadelphia, the water department said the requested rate increases are necessary to account for increasing costs due to inflation.

“In the next two years, as part of continuing national trends, rising costs in labor, chemicals, materials, equipment, laboratory services and capital costs are among a number of factors that will together drive increasing revenue needs,” the city wrote in the statement.

The water department projects that operating costs will rise by $74.8 million in fiscal year 2024, according to the city, while the costs of upgrades, repairs, and maintenance also increase.

In all, the department anticipates the rate increases will generate more than $80 million in fiscal year 2024 and more than $62 million in fiscal year 2025.

The Rate Board will have public hearings and seek resident feedback before making a decision on the request. The hearings had yet to be scheduled as of Wednesday. The city said a final decision is expected in June.