The Philadelphia Water Department is Looking to Raise Residential Rates by 16.9%!
Heads up Philadelphia residents, the Philadelphia Water Department is looking to gauge its residents with a 16.9% price hike according to an announcement made this week.
PWD stated that due to the pandemic they are seeking this nearly 17% price increase that will spread over the next two years. PWD stated that during the pandemic it deferred price hikes and couldn’t collect on delinquent accounts due the city restricting shut-offs. Now their dramatic loss of revenue will be passed on to all customers.
PWD released data shows that a total, 154,000 residential accounts fell into delinquency since last September and 70,000 are facing shutoffs. Meanwhile collections dropped by 10%. The hike will bump water bills by an average of $11.72 a month. The result would be a $49 million dollars in in revenue in year one and an additional $32 million in year two.
PWD Commissioner and CEO Randy E. Hayman stated that the pandemic “created a ‘perfect storm’ of issues for PWD which, if left unaddressed, will be debilitating for the department’s finances.”
According to the Philadelphia Inquirer, “A typical residential bill for a customer using 500 cubic feet of water a month (3,740 gallons) would increase $7.74 a month to $74.47, or 11.6%, on Sept. 1, under the proposal. Bills would increase an additional $3.98 to $78.45 on Sept. 1, 2022, or 5.3%.”