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Philadelphia residents will see a 7.5% increase in their water bills this month.
The Philadelphia Water Department has raised bills by about $7 on average, meaning the typical residential ratepayer could see a monthly bill of about $96.16 per month.
The rates were changed to offset increased participation in the city’s Tiered Assistance Program, which allows lower-income residents to pay their water bills based on their incomes.
The increase also will help the water department fund water, wastewater and sewer upgrades.
“Customers are our primary, and essentially, sole source of income for all of the work that we do,” said Paul Fugazzotto, an assistant deputy commissioner for communications and customer information at the water department.
“Not only are we taking water out of the river, cleaning it up and making it into drinking water, we’re also sending [that] water to our treatment plants through thousands of miles of pipes, and cleaning it up so that it can be clean enough to go back into the [river],” he said. “All of those tasks, and all of the infrastructure, requires money to maintain and update.”
Why are water bills higher?
Every year, the water department adjusts surcharges on ratepayers’ bills based on how much it costs to subsidize the water usage of lower-income residents who rely on the Tiered Assistance Program. That means when there’s increased enrollment in the program, bills rise for people who don’t participate in the program. There are currently 70,000 people enrolled in the program, according to the water department.
The water department said about 27% of the monthly increase of about $6.74 is attributable to greater enrollment in TAP.
The increase related to TAP was approved in July 2026. The remaining percent increase on people’s bills is the second phase of a rate hike approved in July 2025.
The department has increased participation by automatically enrolling residents who qualify, and partnering with the city’s Office of Community Empowerment and Opportunity to personally reach out to eligible residents.
In 2019, 25,000 people were at risk of losing access to their water supply because of unpaid bills. The water department said there’s been about an 80% reduction in overdue bill notices, and attributes it to a number of new assistance programs, as well as improved access to the Tiered Assistance Program.
Expanding enrollment in the program ultimately saves the water department money by reducing unpaid bills and the need to engage in costly collection practices.
How new regulations and infrastructure costs are impacting bills
Water infrastructure across the U.S. is aging, and according to the Environmental Protection Agency, the nation needs at least $630 billion over the next 20 years for stormwater and wastewater projects alone. When combined with drinking water upgrades, water providers across the country collectively need more than $1 trillion.
Rates have also been rising in order to meet requirements to remove PFAS from drinking water, reduce wastewater discharges and replace lead pipes. The so-called “forever chemicals,” found in hundreds of everyday products like nonstick pans, have been linked to serious health problems, including some cancers.
“The unfortunate part of it is that there is not enough of an investment at a a federal governmental level to help the communities who are being tasked with achieving those important policy goals, and the consequence is that we’re being asked to pay for more and more through our water bills that fund things that maybe have other benefits to us,” said Robert Ballenger, an attorney with Community Legal Services, which advocates for affordable utility bills during proceedings for rate cases.
“I believe that there should be more and more diverse funding available to help water and wastewater utilities and the communities they serve to avoid seeing those costs reflected in our water bills.”
The water department said supply costs are also rising significantly, driving rate hikes.
Rising water rates help drive affordability crisis
Rising utility rates are impacting some ratepayers’ ability to pay their bills and keep the taps running. The EPA in 2024 said that between 12.1 million and 19.2 million households across the nation struggled to pay their water bills.
The water department testified during a June City Council hearing that about 2,000 households are disconnected from their water each year.
The water department encourages people who are struggling to pay their water bills to seek assistance. The city uses a single application for all the available bill assistance programs to determine the most affordable rate option for the applicant.
Ballenger advises people to also keep track of their water usage. An average residential household should use no more than 4 to 5 centum cubic feet, or CCFs, of water a month, he said. Households can find their usage on their bill to determine whether they can save water.
Ballenger advocates water providers to provide conservation assistance to households struggling to pay their bills.
“If we reduce the amount of water that a low income household is using, we can reduce the need for them to get a discount on their bill,” he said.