Press Release

PUC Approves Settlement in Pittsburgh Water Rate Proceeding

Published on 2/19/2026

Filed under: Water and Wastewater

Commission Order Reduces Proposed Multi-Year Revenue Request and Includes Expanded Customer Protections

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) voted 5-0 today to approve a Joint Petition for Settlement resolving the base rate proceeding involving The Pittsburgh Water and Sewer Authority (Pittsburgh Water), adopting the recommendation of Administrative Law Judges as modified by the Commission.

Pittsburgh Water provides water, wastewater, and stormwater services to approximately 116,000 residential, commercial, and industrial customers in the City of Pittsburgh and surrounding communities.

In June 2025, Pittsburgh Water filed a multi-year proposal seeking increases in total annual operating revenues of approximately $63.6 million for 2026 and an additional $20.7 million for 2027 — a combined request of approximately $84.4 million over two years.

Under the Settlement approved by the Commission, Pittsburgh Water’s total annual operating revenues will increase by approximately $25 million, representing an increase of approximately 10.2% over revenues at present rates. This amount is significantly lower than the Company’s original request.

The approved annual revenue changes are allocated as follows:

• Water Service: $16,161,095 annual increase (10.1%)
• Wastewater Service: $4,795,717 annual increase (8.4%)
• Stormwater Service: $4,043,187 annual increase (14.3%)

Pittsburgh Water will file tariffs or tariff supplements reflecting the approved rates and other terms addressed in the Settlement. The new rates will become effective for service rendered on and after March 8, 2026.

Settlement Provisions

In addition to resolving revenue requirements, the Settlement includes several measures related to customer service, affordability programs, and stormwater issues.

Customer Service Improvements

• Formal tracking and ongoing evaluation of recommendations from Pittsburgh Water’s 2025 root cause analysis.
• Continued reporting and analysis of customer disputes, informal and formal complaints, and payment arrangements.
• Ongoing reporting to the Low-Income Advisory and Assistance Committee (LIAAC) regarding implementation and effectiveness of customer programs.
• Continued efforts by the call center to meet internal standards of an average answer time of one minute and an abandonment rate of 3% or less each quarter.
  
  

Small Business Customer Support

• Continued availability of payment arrangements for a minimum of six months, with extensions up to 24 months for eligible small business customers.
• Development of a comprehensive informational campaign regarding programs that support small business customers.
  
  

Low-Income Customer Assistance Enhancements

The Settlement expands and modifies Pittsburgh Water’s customer assistance programs, including:

• Automatic enrollment in the Arrearage Forgiveness Program (AFP) for eligible Bill Discount Program (BDP) participants with past-due balances, effective September 1, 2026.
• Expansion of volumetric discounts under the BDP, including:
  • An increase from 60% to 70% for customers at 0–50% of the Federal Poverty Level (FPL).
  • A new 30% discount for customers at 50.1–100% FPL.
• Additional fixed credits for certain BDP participants until implementation of a new rate structure in 2027.
• Continuation of existing discounts on minimum/service charges, stormwater charges, and the PENNVEST charge.
• Implementation of a revised AFP effective September 1, 2026, including transition provisions for existing participants.
  
  

Hardship Fund Expansion

• Eligible customers may apply for Hardship Fund grants up to two times per year per utility service.
• Annual grant limits of $450 for water service and $450 for wastewater service.
• Tracking participation by income level and use of program royalties as a funding source.
  
  

Identification of Confirmed Low-Income Customers

• Meetings within 60 days to develop an approach for identifying and tracking “confirmed low-income” residential customers.
• Continued discussion of this issue through LIAAC meetings.
• Reporting on progress in the Company’s next base rate filing.
  
  

Stormwater Transparency and Outreach

• Annual reporting on stormwater activities and planned capital projects.
• Biannual stakeholder meetings to discuss priority projects and initiatives.
• Continued efforts to pursue external funding sources, including state and federal grants, for stormwater planning and mitigation.

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, 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.

# # #

Docket No.:
R-2025-3055010

R-2025-3055011

R-2025-3055012

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov
• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov