PHILADELPHIA (KYW Newsradio) — Water rates are going up in Philadelphia, after a settlement was made in the Water Department's rate increase request.
The Water Rate Board approved a plan that would increase rates for the average customer by about $7 per month over the next two years.
The board estimates that will generate about $57 million for the Water Department.
That's less than the department originally requested in February, but the department had already reduced the request to a 10% increase because of pension relief provided in the American Rescue Plan.
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The Water Department and Community Legal Services, acting as a public advocate, negotiated the settlement after four public hearings, a technical hearing and extensive public comment.
The board called the agreement “reasonable and in the public interest.”
The Water Department also agreed to extend the COVID-19 shut-off moratorium, and do more outreach to enroll customers in assistance programs and payment plans to avoid shutoffs when the moratorium is lifted.
The first rate increase of 3.5% takes effect this September. Another 6% hike would go into effect in September 2022. The Water Department said this would take the average monthly bill from $66 to $73 within the 15-month period.
However, the department said it may reduce that increase if it gets more federal aid.
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