Capital Program Priorities

Our rates are based on the actual cost of providing drinking water, wastewater conveyance, and stormwater service. The rates that customers pay is driven largely by our capital investments. Four programs making up our 2026-2030 five-year capital program account for approximately $786 million or approximately 65% of our $1.2 billion capital program. These programs reflect the unprecedented level of investment we are making to modernize critical water infrastructure, comply with water quality and environmental regulations and expand capacity to perform needed system maintenance and operations. Not only are these investments critical to the public’s health and safety, but they also support the economic health of the communities we serve.

	2026	2027	2028	2029	2030	Total	% of Total
Total	$304,580,111	$332,615,746	$269,964,557	$177,751,025	$121,667,631	$1,206,579,070
Water Reliability Plan	$58,709,646	$66,397,192	$79,916,803	$80,411,081	$58,496,599	$343,931,321	29%
Small Diameter Water Main Replacement	$45,311,515	$81,418,531	$48,399,904	$9,572,940	$5,122,940	$189,825,830	16%
Lead Service Line Replacement	$43,122,320	$66,755,582	$27,326,639	$0	$0	$137,204,541	11%
Small Diameter Sewer Rehabilitation	$23,172,534	$22,127,231	$25,066,687	$23,000,000	$21,666,767	$115,033,068	10%
Remaining CIP	$134,264,096	$95,917,120	$89,254,524	$64,767,004	$36,381,325	$420,584,069	35%

*Table may not foot due to rounding

• The Water Reliability Plan is a series of multi-generational projects to upgrade crucial drinking water transmission, storage, and pumping infrastructure essential to the treatment and distribution of drinking water. These projects, occurring seamlessly across our system, will provide current and future generations of Pittsburgh residents with safe, reliable water service for decades to come.  
• Each year, Pittsburgh Water replaces 6 to 12 miles of aging water mains from our drinking water system. These replacement projects go hand-in-hand with service reliability and our efforts to modernize our water system.  
• Since 2016, Pittsburgh Water has aggressively removed lead service lines from our drinking water system. We are quickly approaching the removal of 13,000 lead service lines and remain on track to replace all residential lead pipes by 2027.  
• To strengthen our sewer system and extend the useful life of our sewer mains, Pittsburgh Water will rehabilitate or replace the pipes that carry wastewater and stormwater away from homes and businesses.
• The remaining 35% of our Capital Improvement Program includes projects that enhance the safety and security of our system, technology projects focusing on improved cybersecurity, and investments to better manage stormwater such as catch basin replacements and new stormwater infrastructure.

For more information on our progress, read our 2024 Year in Review. This annual report provides an overview of our progress and highlights how we’re delivering on our promises to customers.

PA Public Utility Commission

Our rates are set by the Pennsylvania Public Utility Commission (PA PUC). As part of rate filings, we submit extensive financial and operational data documenting the cost of doing business. The PA PUC will scrutinize this information in an open and thorough process and will offer multiple opportunities for customer involvement, including providing written comments and attending public input hearings. The PA PUC might grant all, some, or none of our company's rate adjustment requests. For more information about the current rates customers pay, please visit www.pgh2o.com/rates.

Rate Filing

On June 4, 2025, Pittsburgh Water submitted a rate filing with the PA PUC reflecting an $84.4 million rate increase request over two years for water, wastewater, and stormwater system improvements through 2027. If approved, we’ll continue making the necessary investment to modernize our water systems, improve service reliability for our customers and protect the health and well-being of the communities we serve. To review the rate filing documents, visit https://www.puc.pa.gov/docket/R-2025-3055010. 

On Thursday, February 19th the Pennsylvania Public Utility Commission (PUC) has approved a customer-focused agreement that balances system investment with long-term affordability and transparency. The new rates will go into effect March 8, 2026. To review the approval documents, please visit the PA PUC's newsroom.

As a publicly owned and operated water utility, every dollar we receive is reinvested back into the water systems you rely on. In recent years, Pittsburgh Water has made tremendous progress to renew Pittsburgh’s water, sewer, and stormwater infrastructure and since 2020, has invested approximately $905 million in capital improvements. Over the next five years, a total of approximately $1.2 billion is budgeted for needed upgrades to critical infrastructure.

Commitment to Affordability

Pittsburgh Water remains committed to affordability and believes that no one should have to choose between paying their water bill and other essential expenses. Our Customer Assistance Programs, first established in 2018, help our most vulnerable customers lower their monthly water bill and reduce past due balances.

Pittsburgh Water is proposing the following enhancements to its Customer Assistance Programs with this rate filing:

• Allowing eligible participants to have their past arrearages forgiven with 24 months of on-time current payments.
• Converting the existing Line Repair and Water Conservation Program to a permanent program.
• Extending the recertification requirement for our Bill Discount Program from two years to five years.
• Automatically enrolling customers into the Bill Discount Program when receiving a Hardship Grant.  

Pittsburgh Water will continue to offer the expanded customer assistance program benefits implemented in 2024. These program enhancements increased income eligibility for the Bill Discount Program to 200% of the federal poverty level (FPL) and established two $450 grants through the Hardship Grant Program, one for drinking water customers and another for wastewater conveyance customers.

Our Customer Assistance Programs provide essential support for thousands of customers. Currently, more than 9,000 customers are enrolled in the Bill Discount Program and through our Hardship Grant Program, we have provided grants to more than 2,804 households and distributed over $1,025,123 in grants. Please visit, www.pgh2o.com/cap for more information about our Customer Assistance Programs.

Other Elements of the Rate Filing

Stormwater Fee

In 2022, Pittsburgh Water established a stormwater fee to equitably charge for stormwater services across Pittsburgh. It is included in the total bill and is based on the amount of impervious or hard surfaces on a property. Incentives are available to residential and non-residential customers wanting to reduce their monthly stormwater fee. For more information about the stormwater fee and credit program, please visit www.pgh2o.com/stormwater.

Distribution System Improvement Charge (DSIC)

The DSIC (Distribution System Improvement Charge) was approved by the PUC in 2020 at a rate of 5% on total water and wastewater charges. It is used to accelerate the replacement of aging infrastructure without having to wait for the next rate filing, providing customers with greater rate stability. Pittsburgh Water has used the DSIC to replace aging water and sewer mains throughout our system. 

PENNVEST Charge (PVC)

Pittsburgh Water will begin assessing costs pursuant to the PENNVEST Charge (PVC) to pay the debt service associated with low-interest loans from PENNVEST. This provides customers with greater transparency related to repayments for debt service associated with our capital investment. Previously incorporated into base rates, these charges will now be identified separately.

Proposal to Eliminate Minimum Charge

Rates proposed for 2027, include a proposal to change the rate structure to eliminate the current minimum charge. If approved, customers would be charged a flat service fee per meter size, unrelated to water usage, to recover customer-related costs and a volumetric charge to recover actual volume of water used. If approved, we’ll provide customers with additional information about this change through our education and outreach channels.

2026 Customer Impacts

Residential Customers

For the typical Residential customer using 3,000 gallons of water per month with a 5/8-inch meter and generates stormwater runoff from 1 ERU, the total bill would increase from $100.27 to $115.29 per month or by 15% in 2026.

Residential	Current Rates	2026 Rates
Water	$64.30	$69.86
PENNVEST Water	N/A	$4.26
Wastewater Conveyance	$21.61	$23.75
PENNVEST Wastewater	N/A	$1.77
Stormwater	$10.06	$11.50
DSIC	$4.30	$4.95
Total	$100.27	$115.29

Residential Bill Discount Customers

Pittsburgh Water's new volumetric discounts will support a wider range of customers.The expanded discounts will reflect an increased discount from 60% to 70% for customers at or below 50% of the Federal Poverty Level (FPL), new 30% discount for customers between 51% and 100% of FPL, and fixed credits for customers between 101% and 200% of FPL until the new rate structure in 2027

For the typical Residential customer at or below 50% FPL enrolled in the Bill Discount Program using 3,000 gallons of water per month with a 5/8-inch meter and generates stormwater runoff from 1 ERU, the total bill would increase from $20.88 per month to $21.01 per month or by 0.6% in 2026.

For the typical Residential customer between 51-100% FPL enrolled in the Bill Discount Program using 3,000 gallons of water per month with a 5/8-inch meter and generates stormwater runoff from 1 ERU, the total bill would decrease from $49.94 per month to $42.51 per month or by -14.9% in 2026.

For the typical Residential customer between 101-200% FPL enrolled in the Bill Discount Program using 3,000 gallons of water per month with a 5/8-inch meter and generates stormwater runoff from 1 ERU, the total bill would increase from $49.94 per month to $50.77 per month or by 1.7% in 2026.

Residential Bill Discount		New 2026 Volumetric Discount Rates
	Current Rates	At or below 50% FPL	51-100% FPL	101-200% FPL
Water	$32.76	$10.97	$25.59	$31.56
PENNVEST Water	N/A	$2.13	$2.13	$2.13
Wastewater Conveyance	$13.36	$4.39	$10.24	$12.13
PENNVEST Wastewater	N/A	$0.88	$0.88	$0.88
Stormwater	$1.51	$1.72	$1.72	$1.72
DSIC	$2.31	$1.65	$1.95	$2.33
Total	$49.94	$21.01	$42.51	$50.77

 

Commercial Customers

For the typical Commercial customer using 13,000 gallons per month with a 1-inch meter and generating stormwater runoff from 8 ERU’s, the total bill would increase from $425.81 to $491.83 per month or by 15.5% in 2026.

Commercial	Current Rates	2026 Rates
Water	$254.02	$275.51
PENNVEST Water	N/A	$17.03
Wastewater Conveyance	$74.87	$81.22
PENNVEST Wastewater	N/A	$7.07
Stormwater	$80.48	$91.96
DSIC	$16.44	$19.04
Total	$425.81	$491.83

Industrial Customers

For the typical Industrial customer using 680,000 gallons per month with a 4-inch meter and generating stormwater runoff from 30 ERU’s, the total bill would increase from $16,763.15 to $21,494.76 per month or by 28.2% in 2026.

Industrial	Current Rates	2026 Rates
Water	$11,627.27	$13,873.34
PENNVEST Water	N/A	$1,298.18
Wastewater Conveyance	$4,050.21	$4,431.83
PENNVEST Wastewater	N/A	$539.42
Stormwater	$301.80	$344.86
DSIC	$783.87	$1,007.14
Total	$16,763.15	$21,494.76

Health and Education Customers

For the typical Health and Education customer using 50,000 gallons per month with a 2-inch meter and generating stormwater runoff from 32 ERU’s, the total bill would increase from $1,784.43 to $2,057.54 per month or by 15.3% in 2026.

Health and Education	Current Rates	2026 Rates
Water	$1,084.14	$1,174.86
PENNVEST Water	N/A	$70.23
Wastewater Conveyance	$308.73	$334.95
PENNVEST Wastewater	N/A	$29.18
Stormwater	$321.92	$367.85
DSIC	$69.64	$80.46
Total	$1,784.43	$2,057.54

Additional Information

Press Releases and Announcements

February 19, 2025: Pittsburgh Water Rate Settlement Approved by PUC, Focused on Customers and Affordability

December 17, 2025: Pittsburgh Water Rate Settlement: What customers can expect in the next year

July 29, 2025: Pittsburgh Water Customers Are Invited to Participate in PA Public Utility Commission Public Hearings

June 4, 2025: Pittsburgh Water Files Rate Request Driven by $84.4 Million Water System Investment

Public Notice

July 24, 2025: PA PUC Public Input Hearings In-person and Telephonic and AUDIENCIAS PÚBLICAS: PRESENCIALES Y TELEFÓNICAS

June 4, 2025: Customer Notice of Proposed Rate Change