For Immediate Release: August 27, 2025
Media Contact: Brian.Rademaekers@phila.gov | (215) 380-9327
New Rates Effective September 1 Following Water Dept. Request for Increased Revenue
Independent Board Set Water, Sewer Rates for Next Two Years
PHILADELPHIA—The Philadelphia Water, Sewer and Storm Water Rate Board (Rate Board), the independent City board that sets Philadelphia Water Department (PWD) rates, recently issued its Rate Determinations regarding (1) the PWD proposed water, sewer, and stormwater base rate increases in Philadelphia for Fiscal Years (FY) 2026 and 2027; and (2) the PWD proposed annual adjustment to the Tiered Assistance Program Rate Rider (TAP-R) Surcharge Rates for FY 2026.
The above-mentioned Rate Determinations separately addressed PWD-proposed changes in rates and charges as set forth in its Formal Notices filed with the Rate Board on March 31, 2025 in connection with the base rate and TAP-R proceedings. The Rate Determinations approved separate settlements negotiated between the parties for each proceeding.
Based on the approved rates (base rates and TAP-R surcharge rates) the typical bill for residential customers with a monthly water usage of 430 cubic feet, or 3,220 gallons, will increase 9.4 percent from the current $81.77 to $89.42 starting September 1, 2025. On September 1, 2026, a typical customer’s bill will increase to $94.31, reflecting an additional 5.5 percent increase beginning next year.
The Rate Board engaged the Hearing Officer to preside over public and technical hearings and to make recommendations to the Rate Board on the issues raised in the proceeding.
To ensure the interests of residential and other small water customers are represented, the Rate Board also contracted with Community Legal Services to serve as the Public Advocate in the proceeding.
At the start of the rate proceeding, PWD detailed the factors driving the need for increased revenue:
- Maintain existing service levels by continuing to provide quality drinking water and treating wastewater, in compliance with federal and state requirements.
- Support critical infrastructure investments such as the multi-billion-dollar Water Revitalization Plan currently underway to bolster system resiliency and improve level of service.
- Ensure that all city residents have access to high-quality water, wastewater, and stormwater services.
- Replenish limited financial reserves that have reached critical levels due to COVID-19 impacts and other costs.
The settlements negotiated in the base rate and TAP-R proceedings constitute carefully negotiated packages representing reasonable compromises among the parties The settlements also provide for lower rates and charges than originally requested by PWD.
The initial PWD request would have raised typical residential bills 11.7 percent in September 2025 and 5.9 percent in September 2026. The Rate Board’s action reduced the proposed increase in rates and charges in both years while authorizing sufficient revenues for PWD to provide safe and reliable service. Furthermore, the settlement in the base rate proceeding includes commitments from PWD regarding customer service issues.
Help with Water Bills
Customers interested in learning more about the Philadelphia Water Department and the urgent need to address aging infrastructure are encouraged to visit water.phila.gov. Anyone facing difficulty in paying a water bill should call (215) 685-6300 and request a customer assistance application or apply online.
About the Rate Board
The Rate Board was established by City Council pursuant to a 2012 amendment to the Philadelphia Home Rule Charter as an independent body to be responsible for setting the Water Department rates and harges. The Board conducted the base rate proceeding and TAP-R adjustment per Council’s mandate and its regulations. The Board’s Rate Determinations, in addition to all of the documentation, including the public's emails and testimony, can be found on the Rate Board's website at http://www.phila.gov/water/rateboard.
About the Philadelphia Water Department
PWD supplies drinking water, wastewater, and stormwater services to approximately 1.6 million people within the City of Philadelphia. The Department also has one wholesale water contract and 10 wholesale wastewater contracts with suburban townships and other entities outside the City.
PWD maintains a network of approximately 3,200 miles of water mains, 3,700 miles of sewers, 25,000 fire hydrants, and six treatment facilities.
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