A new report from an independent watchdog found that Pennsylvania residents with private, for-profit water companies paid nearly twice as much annually as those on municipal systems.
According to Food and Water Watch, private water customers in Pennsylvania faced average annual bills of $1,172, compared with $643 for customers of local government systems — an 82% gap that underscored the financial burden of utility privatization.
Here's what to know
Food and Water Watch examined Pennsylvania's 17 largest community water systems between 2015 and 2025, covering 42% of the state's population, according to the Bucks County Beacon.
Across those systems, typical household bills rose an average of 65% over the course of the decade.
Those increases were not limited to privately owned utilities. Food and Water Watch found that for-profit systems raised typical bills by an average of 69%, compared with a 63% increase at local government systems, according to the Bucks County Beacon.
Corporate-owned systems served 31% of Pennsylvania residents, according to federal Environmental Protection Agency data. American Water and Aqua Pennsylvania, the state's two biggest private water corporations, own four community water systems ranked among the country's 10 costliest.
TCD Picks » Quince Spotlight
💡These best-sellers from Quince deliver affordable, sustainable luxury for all
More background
Mary Grant, Food and Water Watch water-policy director, argued that Pennsylvania's 2016 Act 12 was largely to blame for the state's present situation. The act allowed private companies to inflate the purchase price for public water systems, thereby further incentivizing cash-strapped municipalities to sell.
However, once companies paid those higher acquisition prices, they increased rates to recoup their costs, Grant said.
Additionally, whereas private companies once purchased mostly floundering water services in need of fixing, fully functioning, financially sustainable utilities have now also become acquisition targets, according to Bill Ferguson, founder of Keep Water Affordable and a New Garden Township resident. He noted that the Pennsylvania law was originally intended to help struggling utilities.
Ferguson told the Bucks County Beacon that Aqua Pennsylvania bought his township's sewer and wastewater authority for $29.5 million in December 2020. Later, ratepayers discovered that rates had risen more than 30%.
"They have to make their money back somehow, so they go after it in their rates," Ferguson said, according to the Beacon.
Where can I learn more?
Pennsylvania's utility-ownership debate comes as water bills rise nationwide.
• Pennsylvania union members warned of sewer rate hikes and accused American Water of intimidation.
• Philadelphia's average monthly water bill reached $96 after rates rose 7.5%.
• Nationwide, water bills jumped 62% over a decade, outpacing paychecks and inflation.
• Texas lawmakers sought an Aqua Texas probe after residents documented steep bill increases.
• Massachusetts residents faced rising water bills despite lower usage as infrastructure costs mounted.
Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
