The Pennsylvania Public Utility Commission voted 5-0 Thursday to approve a settlement for the Pittsburgh Water and Sewer Authority, authorizing a $25 million increase in annual operating revenues.
The approved increase represents a 10.2% rise over current revenues, which is significantly lower than Pittsburgh Water’s original request, the PUC says.
Pittsburgh Water will file tariffs reflecting the approved rates and terms in the coming weeks. New rates will take effect on March 8.
This comes after city property owners were hit with a one-two punch late last year. City council passed a 20% tax hike, and Pittsburgh Public Schools implemented a 2% increase.
For retirees like Bernie Daniels, it’s a situation that’s less than ideal
“I’m a bill-paying guy, that’s all I do – and I’m hoping I can keep up with this economy and everything going up,” Daniels said.
Others told us they hope there are no more surprises.
“It feels like a little bit, but over the course of the year, it definitely adds up,” said Mason Modell of Highland Park. “I’m currently in the process of buying a home, so I’m taking consideration of everything when it comes to money, saving, and finances.”
In June 2025, Pittsburgh Water had proposed a multi-year increase totaling about $84.4 million through 2027. The final settlement includes expanded customer protections and modifications to low-income assistance programs.
The revenue change is divided among three primary service areas. Water service will see an annual increase of approximately $16.2 million, while wastewater service will rise by $4.8 million. Stormwater service revenues will increase by about $4 million.
As part of the settlement, Pittsburgh Water must adhere to specific customer service performance standards.
Pittsburgh Water’s call center is required to maintain an average answer time of one minute and keep call abandonment rates at or below 3% each quarter.
Pittsburgh Water will also track recommendations from a 2025 root cause analysis and continue reporting on customer disputes and payment arrangements.
The agreement expands the Bill Discount Program to provide deeper volumetric discounts for low-income households. Customers living at 0% to 50% of the Federal Poverty Level will see their discount increase from 60% to 70%. A new 30% discount was also established for customers between 50.1% and 100% of the poverty level.
Financial assistance for eligible customers was further expanded through the Hardship Fund. Participants can now apply for grants up to two times per year for each utility service. The annual grant limits are set at $450 for water service and $450 for wastewater service.
Effective Sept. 1, eligible customers with past-due balances will be automatically enrolled in an Arrearage Forgiveness Program.
The settlement also addresses small-business support and stormwater transparency. Eligible small-business customers will have access to payment arrangements for a minimum of six months, with potential extensions up to 24 months. For stormwater management, the authority must provide annual reports on capital projects and hold stakeholder meetings twice a year to discuss priority initiatives.
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