Register with Bluefield for immediate, free access
to water market data and analysis.
Login

Philly’s Case for Unique Water Pricing Model

08 June 2017
Research Note

Philadelphia is implementing an new water pricing model, making it the first city in the U.S. to establish water rates based on income.

On 1 July 2017 Philadelphia’s tiered assistance program (TAP), an income-based water rate structure, will go into effect. Unpaid water bills exceeding US$170 million, coupled with 40% of customers falling behind on bill payments at any given time, has compelled PWD to adopt this new rate structure.

This shift is part of a broader national discussion regarding the affordability of water in an era of rising water rates to pay for critical infrastructure improvements.

In this Research Note, Bluefield water experts analyze this new pricing structure, the reasons behind it, and other innovative ways water utilities are working to recoup costs.  See more recent analysis available through our US & Canada Municipal Water Infrastructure service.

Takeaways

  • Innovative pricing structure insulates poor from rising water rates.
  • Delinquency undermines water and sewer services, forcing new strategy.
  • Nationally, water utilities seek innovative strategies to recoup water utility costs.

Companies Mentioned

// //

Related Bluefield Analysis

U.S. Municipal Water Infrastructure: Utility Strategies & CAPEX Forecasts, 2016-2025 More than 50% of U.S. municipal water & wastewater infrastructure is nearing the end of its useful life with over 240,000 water main breaks per year. Over the next ten years, municipal utilities have set the stage for over US$532 billion in capital improvements to address deteriorating piping ne...
Arcadis, AECOM Alter Water EPC Design Rankings On 21 August 2014, Netherland’s-based EPC, Arcadis submitted a US$477 million bid for UK-based Hyder Consulting. This represents Arcadis’ second bid after its $425 million was topped by Nippon Koei’s US$445 million offer on 11 August 2014. Hyder’s 2013 revenues, totaling US$472 million, were draw...
Outsiders Angling for Stakes in U.S. Water Market The increased focus on U.S. water infrastructure is attracting industry outsiders to the water industry -- exploring paths for market entry. Successful entrants have carved-out positions across the value chain, from water utility investment and ownership to O&M service offerings. In February ...

$250

Interested in becoming a client?

Learn more about our services »

Contact us »

Share with colleagues





WATEC Israel 2017
(Tel Aviv, September 12-14)

Porto Water Innovation Week 2017
(Porto, Portugal, September 24-30)

03 Aug 2017 U.S. water industry trickles toward Wall Street

28 Jul 2017 Atlantic City Activists Scored a Victory for Public Water