Pittsburgh Water Rate Settlement: What Customers Can Expect in the Next Year

Pittsburgh, PA - Pittsburgh Water is one step closer to finalizing a customer-focused Settlement that expands bill assistance, strengthens consumer protections, and ensures reliable water service while limiting rate changes to a single year, in its rate proposal submitted to the Pennsylvania Public Utility Commission (PUC) on June 4, 2025. The proposed Settlement, reached through negotiations between Pittsburgh Water and stakeholder groups, and still pending final PUC approval, prioritizes transparency, engagement, and enhanced customer assistance while providing sufficient funding to advance critical infrastructure investments in 2026. If approved, new rates and terms will go into effect no sooner than March 8, 2026.

"We're pleased to present a proposed Settlement to the PUC that reflects our ongoing commitment to supporting customers through expanded bill assistance programs, while continuing to invest in critical infrastructure improvements," said Pittsburgh Water CEO Will Pickering. "These additional resources will help to strengthen the reliability of our water system and ensure it meets the needs of Pittsburghers today and for generations to come."

With this proposed Settlement, Pittsburgh Water is poised to secure the funding necessary to deliver on its most urgent infrastructure priorities while maintaining its commitment to affordability and transparency. The agreement reflects a thoughtful balance between customer support, long-term investment, and building a resilient water system that can adapt to the needs of a growing and evolving city.

Commitment to Affordability

Pittsburgh Water continues to demonstrate its commitment to affordability and is a national leader for providing customers with multiple avenues for assistance. The utility's Customer Assistance Programs, first established in 2018, have benefited thousands of customers over the past seven years. Customers enrolled in the Bill Discount Program or those who have benefitted from the Hardship Grant Program will continue to receive the same level of support plus additional enhancements designed to benefit a wide range of incomes.

The Bill Discount Program remains the utility's most prominent program with nearly 9,000 customers enrolled. Participants will continue to receive the first 1,000 gallons of water and wastewater conveyance for free, an 85% discount on the stormwater charge, and a 50% discount on the PENNVEST Charge when it begins to be assessed in 2026. Additionally, nearly 4,000 customers have benefitted from the Hardship Grant Program. To date, the utility has distributed more than $1.65 million to help income eligible customers pay down past due balances and reduce their water bill. Customers will continue to have the opportunity to apply for $450 annual hardship grants for each water and wastewater conveyance service.

Settlement establishes rates for 2026 only

The terms of the Settlement are limited to setting rates for 2026 only with Pittsburgh Water agreeing to withdraw the request for base rate increases in 2027. All parties agreed to a base rate revenue increase of $25 million - an amount that is $32.7 million less than the combined base rate revenue requested in the utility's original proposal for 2026 and 2027.

If approved, the monthly Pittsburgh Water bill for a typical residential customer using 3,000 gallons of water per month and charged the base rate for stormwater, would increase by $15.02. For residential customers enrolled in the Bill Discount program earning between 101%-200% of the Federal Poverty Level (FPL), their monthly bill will increase by $0.83. Additional discounts are available for customers who have an income level at or below 100% of the FPL.

Once the PUC approves the Settlement, more information will be provided on changes to individual customer classes including residential, residential bill discount customers, and non-residential classes including commercial, industrial, and health and education.

Enhanced Customer Assistance

Pittsburgh Water continues to find ways to enhance their existing Customer Assistance Program. Under the terms of the proposed Settlement, improvements include forgiving past-due balances provided the customer consistently makes on-time payments of current charges; extending the recertification requirement for the Bill Discount Program from two years to five years for customers on fixed incomes; and automatically enrolling customers in the Bill Discount Program when they receive a Hardship Grant. Other program-specific changes in the Settlement proposal are outlined below:

Volumetric Discounts Support a Wide Range of Incomes

New volumetric discounts are the latest expansion of Pittsburgh Water's Bill Discount Program set to benefit customers ranging from very low to moderately low income based on the federal poverty level.

• The volumetric discount will increase from 60% to 70% for customers earning less than or equal to 50% of the federal poverty level
• A new volumetric discount of 30% will be added for customers earning more than 50% and up to 100% of the federal poverty level.
• Effective in 2026 until implementation of the new rate structure in 2027, Pittsburgh Water will establish a fixed credit for volumetric charges for customers earning more than 100% and up to 200% of the federal poverty level who are also enrolled in the Bill Discount Program. Those individuals will receive a fixed credit of $5.00 for water consumption charges and a credit of $2.50 for wastewater conveyance charges.
• Upon implementation of the new rate structure, all Bill Discount participants will receive a bill credit equal to the first 1,000 gallons of water and wastewater conveyance charges.

Protection from Water Leaks

Pittsburgh Water's Line Repair and Water Conservation Program, introduced as a pilot program in 2024, is now slated to become a permanent offering. Approximately 290 customers have benefitted from the program, receiving repairs to the private portion of their water service line and installation of water-saving devices such as low-flow toilets, water-efficient shower heads, and aerators at no cost. These repairs have helped customers save hundreds of dollars on their monthly water bill.

Pittsburgh Water will also establish a discretionary leak credit available to residential and non-residential customers regardless of income. When customers receive notification, usually through their monthly water bill, for higher than normal water use resulting from a leak, they will have an opportunity to receive credit for the increased water usage. By showing proof of repair and enrollment for free leak alerts through the Customer Advantage Portal, Pittsburgh Water may, at its discretion, provide a credit reducing the higher than normal charges down to their average consumption over a 12-month period.

"When customers experience a leak on their service line or in-home plumbing fixtures, it can come as a surprise and the cost can be overly burdensome," said Julie Mechling, Director of Customer Service. "We are pleased to offer these additional protections to customers helping them to manage costs associated with unexpected repairs resulting from water leaks."

Earlier this year, Pittsburgh Water established the optional Service Line Protection Programavailable through Oncourse Home Solutions. Residential customers can purchase additional insurance to protect themselves from costly unexpected water, sewer, or in-home plumbing repairs. Proceeds from this program support the Hardship Grant Program.

Improved Transparency and Elimination of Minimum Charge

In its 2023 rate filing, Pittsburgh Water received approval to implement a water and wastewater conveyance PENNVEST Charge - a charge dedicated to paying a subset of the low-interest PENNVEST loans which are used to finance the construction of needed water and wastewater projects. The new charge has been expanded to cover all current and future PENNVEST loans and will appear on customer bills when the new rates go into effect in 2026. This new line item improves transparency about how Pittsburgh Water is using ratepayer dollars to fund infrastructure projects, like theWater Reliability Plan.

Additionally, this Settlement sets in motion Pittsburgh Water's proposal to eliminate the fixed minimum charge for water and wastewater conveyance services. Customers currently pay a fixed rate for the first 1,000 gallons of water and wastewater conveyance. Beginning February 1, 2027, this charge will be removed and replaced with a service fee and a revised rate structure similar to other PUC regulated utilities.

Pittsburgh Water will share more information with customers about this change as it becomes available.

Stormwater Education and Outreach

Pittsburgh Water maintains an active education and outreach program that prioritizes community engagement, classroom learning, and partnerships with local schools and institutions such as Pittsburgh Public Schools, the Pittsburgh Children's Museum, Children's Hospital of Pittsburgh, and the Carnegie Libraries of Pittsburgh. Throughout 2025, Pittsburgh Water has participated in or hosted more than 120 community events or meetings engaging with customers on topics ranging from water quality, infrastructure improvements, customer assistance, workforce development, and stormwater.

To enhance engagement with stakeholders and elevate awareness of current stormwater activities, Pittsburgh Water has agreed to host a biannual stakeholder meeting to discuss the status of priority projects and initiatives identified within its Capital Improvement Plan and will publish annual highlights relating to planned stormwater activities, public events, and outreach to its website. These actions, agreed to by the parities participating in the rate-setting process, are believed to increase awareness, improve transparency, and create dialogue around the prioritization of stormwater projects.

"We appreciate the public's participation in our rate setting process and the collaboration required to reach the Settlement agreement," said Alex Sciulli, Pittsburgh Water's Board Chair. "This is a critical moment in our history, and we must move forward with these improvements to provide current and future customers with the water services they can rely on for generations to come."

For more information about our current rate filing, please visit www.pgh2o.com/our-water-future.