Press Release

PUC Approves Water, Wastewater and Stormwater Rate Settlement for Pittsburgh Water and Sewer Authority

Published on 1/18/2024

Filed under: Water and Wastewater

PWSA’s Multi-Year $146.1 Million Rate Increase Proposal Reduced to $35.9 Million, With No Further Changes Until At Least 2026

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a joint settlement regarding rate changes proposed by the Pittsburgh Water and Sewer Authority (PWSA) for water, wastewater, and stormwater services.

The Commission voted 5-0 today to adopt the Recommended Decision of PUC Administrative Law Judge Gail M. Chiodo and approve the joint settlement, which will result in substantially smaller rate changes than initially requested by PWSA – which provides service to approximately 100,000 residential, commercial, and industrial customers in the City of Pittsburgh and surrounding communities.

PWSA Rate Case Settlement

The joint settlement approved by the PUC today authorizes PWSA to increase annual base rate revenues by $35.9 million per year – compared to PWSA’s original filing, which called for a multi-year increase of $146.1 million, including a $46.8 million increase in the 2024 fiscal year, an additional increase of $45.4 million for the 2025 fiscal year, and a third increase of $53.9 million for the 2026 fiscal year. Additionally, the settlement includes a “stay out” provision so that PWSA cannot file another rate increase request any sooner than Jan. 1, 2025, for implementation in 2026, with limited exceptions for extraordinary relief.

Today’s Commission order directs PWSA to file the necessary tariff supplements or tariff revisions for rate changes to be effective for service rendered on and after February 15, 2024.

In addition to the substantial reduction in rate changes, the settlement approved today addresses numerous items related to customer service and affordability, including:

• Enhancing PWSA call center performance and identify individuals eligible for customer assistance programs.
• Collaborating with the City of Pittsburgh and the Allegheny Department of Human Services to coordinate on issues related to low income customer assistance programs.
• Expanding the maximum income eligibility for PWSA’s Bill Discount Program and increasing discounts for customers at or below 50% of the Federal Poverty Level.
• Increasing the maximum size for Hardship Fund grants.
• Holding collaborative meetings to identify ways to address stormwater issues, including identifying funding opportunities.
• Developing an outreach and education plan related to available assistance and mitigation measures connected to the stormwater fee.
• Working together with the Pittsburgh School District to address stormwater management issues.
• Maintaining complete PWSA data regarding customer complaints, work orders and service logs, for potential study in future rate case proceedings.

According to the settlement, a total typical bill for residential water, wastewater conveyance and stormwater, using 3,000 gallons of water per month, will increase by $13.84 (16%) – from $86.43 to $100.27.

This is substantially less than the original PWSA request, which would have increased that same residential bill by $16.98 (19.6%) in 2024 – along with the additional increases that PWSA had proposed for 2025 and 2026, which will not occur under this settlement.

The joint settlement was proposed and supported by PWSA, the PUC’s independent Bureau of Investigation and Enforcement, the Pennsylvania Office of Consumer Advocate, the Office of Small Business Advocate, Pittsburgh United’s Our Water Table, the City of Pittsburgh, and the School District of Pittsburgh.

About the PUC

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

Visit the PUC’s website at www.puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on X (formerly Twitter), Facebook, LinkedIn, Instagram, and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket No.:
R-2023-3039919
R-2023-3039920
R-2023-3039921

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov