City of Philadelphia requests water, sewer rate hike

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The Philadelphia Water Department wants to raise water and sewer rates in the city by more than 16% over the coming two years.

The water department said the proposed rate increase, which must be approved by the city’s Water, Sewer and Storm Water Rate Board, is driven by rising labor and equipment costs, as well as new federal regulations requiring water providers to take steps to improve surface and drinking water quality.

The average ratepayer could face a monthly bill of about $91 starting in September, and almost $97 dollars the following year if the increase is approved, according to the water department.

“We’ve sought close to a billion dollars in aid over the last few years through either low-interest loans or grant money, and we’re continuing to do that,” said water department spokesperson Brian Rademaekers. “But the fact is we need to be able to count on accurate rates to pay for the costs that we know are coming down the pike.”

The U.S. Environmental Protection Agency is requiring water providers to invest in technology to remove the toxic class of “forever chemicals,” known as PFAS, from drinking water in the next few years, and to remove lead pipes over the next decade.

Water providers have also been tasked with upgrading their wastewater infrastructure to reduce stormwater and sewage overflow, and to eliminate discharges of ammonia into waterways.

A 2018 EPA report estimated public water systems across the United States would require a $472.6 billion investment in infrastructure improvements within the next two decades.

Last September, Philadelphia residents’ water bills increased by 12%.

“Rates are going up across the country because the cost of providing clean water is getting more expensive,” Rademaekers said. “So, when you have a nonprofit utility like the water department here in Philadelphia that depends on rates, we really have little option other than to ask for the revenue that we need to do our job.”

The proposed rate increase would also help fund the city’s 25-year, multibillion-dollar Water Revitalization Plan, which aims to prevent system failures.

The city’s estimate for a person’s water bill under the proposed increase is based on the average water use per household.

However, Robert Ballenger, an attorney for Community Legal Services of Philadelphia, which advocates for ratepayers, said residents who live in older homes may use more water than average.

“Some of our older housing stock, typically housing that’s occupied by folks with moderate and low incomes, have less efficient fixtures and so use more water. Those folks are going to be having a harder time facing higher prices than average,” he said.

Ballenger said he’s also concerned how the elimination of certain pandemic-era assistance programs, such as the Low Income Household Water Assistance Program, might impact people struggling to pay their bills.

“Overall, we’re in a situation where the water department is claiming it needs more from customers,” he said. “The customers are seeing less by way of resources to help them with their water bills and that’s a troubling phenomenon, and I think we need to try to confront that on multiple levels.”

The city said not only does it plan on pursuing federal funding to help pay for infrastructure improvements, but it’s also expanding access to its Tiered Assistance Program and its Senior Citizen Discount Program to help more people pay their bills.

Following a public testimony process, the rate board must decide whether the city’s request is reasonable.

“We definitely encourage customers to get involved, come out to the public hearings, voice their mind, but also listen to the situation,” Rademaekers said. “We’re a public nonprofit utility. When we set rates, we’re not doing it to make profit. We are doing it because this is the money that we know we’re going to need in the years ahead to continue delivering the services that people depend on.”