With Philly water rate hikes kicking in, average customers can expect to pay nearly $100 more per year

A Philadelphia Water Department rate hike went into effect Monday and typical customers should expect to pay nearly $100 more a year with their average monthly bill increasing by 9.4%.

Community Legal Services, which takes on the role of the public advocate during rate change proceedings, recently reached an agreement that called for a reduction in hikes originally proposed by the the department and city while also investing in assistance programs geared toward low-income users.

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The water department released information Monday notifying customers that usage, service and stormwater charges will increase.

Service charges are based on the size of the line, usage charges are based on the quantity of water used and stormwater charges are a flat fee for recovering costs for the city to manage runoff. The rate increase was approved by the Water, Sewer and Storm Water Rate Board in July.

As a result of the changes, the average water customer who paid around $81.77 in September 2024 will pay $89.42 this month (a $7.65 increase), according to the Philadelphia Water Department.

Robert Ballenger, divisional supervising attorney with CLS who specializes in energy and utilities issues, explained that the department's mandated facility upgrades and water quality obligations — combined with inflationary pressures — were the main contributing factors in the $189.4 million increase in funding over a two-year period.

"When there are strong inflationary forces, those hit the department just like they hit all of its customers," Ballenger said. "The water department has to come up with ways to finance those capital projects and ways to pay for the financing. … Under the status quo, all of that is financed by rates and charges."

During negotiations, CLS was able to cut around $33 million from the water department's initial requested increase of $222.5 million.

"There wasn't really something that we could come up with that would avoid the necessity of some increase, but we mitigated it as best we could," Bellenger said.

A representative with the water department did not respond to requests for comment.

The agreement also called for evaluating assistance programs and looking at other revenue sources, such as federal funding, to avoid future increases to water bills.

"For most people, when you go to get a glass of water, you don't necessarily think about all of the ways in which your water bill is investing in the broad-scale improvement of the natural environment in Philadelphia," he said. " … Currently that investment is, for the most part, being financed through our water bills. I think that warrants some serious discussion about getting other sources of revenue to help with those investments."

The water department offers a tiered assistance program for customers who may require help with paying off utility debt. Programs are designed for low-income, senior or customers undergoing "special hardship," including having a baby, losing a job, serious illness, family loss and general increased household expenses. These programs can be applied for online.