PUC Approves Reduced PA American Water Rate Increases Of 4.75% For Water, 14.17% For Wastewater Customers

On July 16, the Public Utility Commission approved a modified water and wastewater rate changes for Pennsylvania American Water Company-- cutting the utility’s originally requested increase by more than half while adopting a series of measures designed to enhance customer service and strengthen consumer protections.

The Commission voted 4-1 to approve a motion by Chairman Steve DeFrank modifying the company’s proposed rates for water and wastewater services and adjusting the recommended return on common equity for PAWC. 

Vice Chair Kimberly M. Barrow issued a statement regarding her dissent, and Commissioner Kathryn L. Zerfuss issued a separate statement regarding her position on the Commission’s final decision.

The Commission approved an overall annual revenue increase of $74.9 million – which includes an annual revenue increase of $45,299,821 (approximately 4.75%) for PAWC’s water operations along with an annual revenue increase of $29,623,619 (approximately 14.17%) for the company’s wastewater operations.

Under the original rate request, water rates would have increased by more than $143.4 million (approximately 15%) while wastewater rates would have increased by more than $16.1 million (approximately 7.7%).

The new rates, consistent with the Commission’s Order, will take effect on and after August 13, 2026.

PAWC, which provides water and wastewater services to approximately 810,000 customers in portions of 38 counties across the Commonwealth, last filed for an increase in water distribution and wastewater base rates in 2023.

Click Here for the PUC announcement with other details of the rate settlement.

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[Posted: July 18, 2026]  PA Environment Digest