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The Pittsburgh Water & Sewer Authority

Issuer Type: Water/Sewer

Revenue

Moody's
A3
S&P
A
Edward Barca

On behalf of the Pittsburgh Water & Sewer Authority, I would like to welcome you to our new investor relations website. We appreciate your interest and investment in bonds issued by the Authority, as it allows us to make critical investments in water and sewer infrastructure throughout Pittsburgh. We are committed to maintaining our strong bond ratings, and we are also committed to being as transparent as possible with the investor community and public at large.

I hope you find this website useful as you seek to better understand the credit fundamentals of the Authority. Please do not hesitate to contact our office with suggestions for how we can improve. Thanks again for your interest in our bond program.

Edward Barca, Deputy Director of Finance/Treasurer

News & Highlights

March 17, 2020

Press Release
PWSA Submits Multi-Year PUC Rate Request

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 Sewer2020 Existing Total2021 Proposed Water2021 Proposed Sewer2021 Proposed TotalMonthly 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 Sewer2020 Existing Total2021 Proposed Water2021 Proposed Sewer2021 Proposed TotalMonthly 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.

Read Press Release

January 29, 2020

Press Release
PENNVEST Awards PWSA $65M Low-Interest Loan

Harrisburg, PA – The Pennsylvania Infrastructure Investment Authority (PENNVEST) board of directors today approved a funding offer for more than $65 million in low interest loans to the Pittsburgh Water & Sewer Authority (PWSA) for the first phase of a comprehensive infrastructure replacement program. The offer is the single largest drinking water funding offer in PENNVEST’s thirty-one year history. 
 
The award will support the first phase of a small diameter main replacement plan for the PWSA service area, which will total more than $326 million upon completion. Initial improvements financed by this award include the replacement of just under 80,000 linear feet of aging water distribution mains, along with the publicly owned portions of more than 2000 water service lines, including approximately 850 lead public service lines. Where the private portion of the service line is also lead, it will be replaced as well. The PWSA service area covers more than 300,000 residents in and around the Pittsburgh metropolitan area.
 
"Tackling Pittsburgh's aging infrastructure after decades of disinvestment hasn't been easy, but with the leadership of Governor Wolf, PENNVEST and PWSA, we're making sure our water is safe and clean for generations of future residents," Pittsburgh Mayor William Peduto said.
 
“Pennsylvania has some of the oldest infrastructure in our nation,” said Eric Menzer, chairman of the PENNVEST board of directors. “The Pittsburgh Water & Sewer Authority continues to be a responsible authority providing clean, sustainable water systems to hundreds of thousands of Pennsylvania residents. Their commitment to health and safety is evidenced by their plan for more than $326 million in investment over the coming years and PENNVEST is committed to continuing as a partner in that process every step of the way.”
 
“This funding will allow us to continue and expand our infrastructure renewal efforts. By proactively replacing aging water mains throughout our system, we can improve system reliability and reduce the frequency and severity of service disruptions, while also continuing to aggressively replace lead service lines,” said PWSA Executive Director Robert Weimar. “We’re very thankful to the PENNVEST Board, Governor Wolf, Mayor Peduto, and our city and state legislative leaders for this crucial support, which we project will save our ratepayers $20 million over the next 20 years.” 
 
Since its inception in 1988, PENNVEST has funded nearly 200 clean water projects throughout Allegheny County, providing over $500 million in funding.

Read Press Release

January 24, 2020

News
PWSA in the News: Community Lead Response Wraps up a Successful 2019

We are pleased to announce continued success with the Community Lead Response by again surpassing the number of lead line replacements required by the Pennsylvania Department of Environmental Protection (DEP). In 2019, we replaced a total of 3,202 public lead service lines, which far exceeded the DEP requirement to replace 855 lead lines between July 1, 2019 and June 30, 2020. More than 2,054 lead water service lines were replaced in 2018. 

The 2019 Lead Service Line Replacement Program kicked off in spring of 2019, funded by a $49 million low-interest loan and grant from The Pennsylvania Infrastructure Investment Authority (PENNVEST). Under this program, we replaced public lead service lines as well as private lead lines when they are found connected to a public lead line. These replacements, as well as plumbing upgrades that are required as a result of the work, come at no cost to the customer. Since our lead line replacement program first began in 2016, over 6,100 public lead service lines have been removed from the water system.

You can read more about our Community Lead Response at lead.pgh2o.com.

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