Edward Barca,
Director of Finance
Pittsburgh, PA - Today, the Pittsburgh Water and Sewer Authority (PWSA) filed a multi-year rate request with the Pennsylvania Public Utility Commission (PUC). The PUC will evaluate the request, which includes revenue increases totaling $43.8 million in 2021 and $12.6 million in 2022, as well as a more robust customer assistance program. The PUC review process can take up to nine months.
The PUC approved our first rate filing last year, which provided an additional $21 million per year to spend on infrastructure improvements throughout our water system. We are using this funding to aggressively replace lead service lines, improve our drinking water treatment, renew aging sewer lines, and design stormwater projects to reduce pollution and sewer overflows. We invested over $100 million on capital improvements last year, and this year we plan to invest $200 million in our capital program.
“Our rate proposal allows us to build upon our recent accomplishments and further our progress toward modern water treatment, reliable water delivery, and sewage conveyance systems that current and future residents can count on,” stated Robert Weimar, PWSA’s executive director. “We recognize the burden utility rate increases place on our customers, which is why we’re proposing an even more generous bill discount program for our most vulnerable residents.”
The rate filing includes a plan to raise an additional $43.8 million in 2021 and $12.6 million in 2022. Included in this amount is a request for a Distribution System Improvement Charge (DSIC) assigned at 10 percent of the fixed monthly charges. The DSIC provides utilities with the ability to place a small surcharge on a customer’s monthly bill to fund PUC-approved upgrades to water and sewer mains.
As part of this rate filing, we have also submitted a proposal outlining the structure for a stormwater program, as required by the PUC’s 2018 Final Implementation Order. This proposal does not include a stormwater fee at this time. If the PUC approves this submittal, a stormwater fee would be considered in a separate rate filing.
What does this mean for customers?
The typical residential customer using 3,000 gallons of water currently pays $72.49 per month under the existing rates. If our rates are approved by the PUC next year, this would increase to $86.31 or by $13.82 per month.
Requested Rates - Residential Customers
| Minimum Charges | Monthly Usage Charges|
2020 Existing Water
| 2020 Existing Sewer | 2020 Existing Total | 2021 Proposed Water | 2021 Proposed Sewer | 2021 Proposed Total | Monthly Impact $ |
|---|---|---|---|---|---|
| 5/8" | 1 | $27.27 | $8.28 | $35.55 | $29.11 |
| 5/8" | 3 | $49.35 | $23.14 | $72.49 | $58.15 |
| 5/8" | 5 | $71.43 | $38.00 | $109.43 | $87.19 |
| 5/8" | 7 | $93.51 | $52.86 | $146.37 | $116.23 |
| 5/8" | 12 | $148.71 | $90.01 | $238.72 | $188.83 |
| 1" | 20 | $255.42 | $151.27 | $406.69 | $324.50 |
Minimum charges are based on a customer's meter size. The typical residential customer has a 5/8 inch meter.
The proposal also includes an expansion of our Bill Discount Program. If approved by the PUC, income-eligible households will receive a 100 percent reduction in monthly fixed charges. The average residential customer using 3,000 gallons of water a month would pay $46.35 or an increase of $0.53.
We’re committed to balancing the needs of our most vulnerable populations, while also delivering a water system that our customers can rely on now and into the future. Learn more about the existing assistance programs and see if you qualify at www.pgh2o.com/CAP.
Requested Rates - Customers Eligible for Bill Discount Program
| Minimum Charges | Monthly Usage Charges|
2020 Existing Water
| 2020 Existing Sewer | 2020 Existing Total | 2021 Proposed Water | 2021 Proposed Sewer | 2021 Proposed Total | Monthly Impact $ |
|---|---|---|---|---|---|
| 5/8" | 1 | $6.82 | $2.07 | $8.89 | $0.00 |
| 5/8" | 2 | $17.86 | $9.50 | $27.36 | $14.52 |
| 5/8" | 3 | $28.90 | $16.93 | $45.83 | $29.04 |
| 5/8" | 4 | $39.94 | $24.36 | $64.30 | $43.56 |
| 5/8" | 5 | $50.98 | $31.79 | $82.77 | $58.08 |
Minimum charges are based on a customer's meter size. The typical residential customer has a 5/8 inch meter.
“We are taking every reasonable step to provide our customers with safe and reliable water services at the lowest possible rates,” Board Chair, Paul Leger stated. “With PUC oversight there is greater transparency and accountability throughout the process.”
PUC Rate Setting Process and Oversight
Pittsburgh ratepayers will have an opportunity to participate in the rate-setting process. The PUC will likely hold public hearings on the proposal. PWSA will provide public testimony to justify and explain the requested rates. The Pennsylvania Office of the Consumer Advocate and Small Business Advocate will also review and comment on the request. The PUC may elect to change the rates included in the rate filing.
The PUC began providing oversight of our customer service, operations, and rate-making after the Governor signed Act 65 in December 2017. We are the first municipal authority to be regulated by the PUC. For more information on PUC oversight and actions customers can take in response to the rate request, please visit www.pgh2o.com/customer-rights.
As a publicly owned authority, every dollar we collect in rate revenue is invested back into the organization to improve drinking water, sewer, and stormwater services. We never lose sight that this is your water. We are proud to serve Pittsburgh and are dedicated to providing the water services you expect and deserve.
For more information about the rate filing, please visit www.pgh2o.com/ourwaterfuture. Customers will receive a detailed explanation of the rate proposal in their March bill.
