Private Water Companies Charge Pennsylvania Residents 82% More Than Public Utilities

Households in Pennsylvania now pay a premium for water when their service is provided by a private corporation rather than a local government. A report released by Food and Water Watch shows that for-profit systems charged residents 82% more than public systems in 2025. The average annual bill for a household connected to a private utility was $1,172, while the average for a municipal system stood at $643.

The study analyzed the 17 largest community water systems in the state, which serve 42% of the population. Between 2015 and 2025, typical household bills rose by 69% in areas served by for-profit companies. In contrast, bills under local government management increased by 63% over the same period. The analysis indicates that while both sectors saw price growth, the private sector drove higher rates.

Federal data from the EPA’s Safe Water Drinking Information Systems indicates that 31% of Pennsylvania residents currently receive water from corporate-owned systems. Four of the ten most expensive community water systems in the United States are owned by American Water and Aqua Pennsylvania, the two largest private water corporations in the state. This concentration of high-cost services is a key focus for advocates seeking to understand the drivers of inflation in utility costs.

The rise in private ownership followed the passage of Act 12 in 2016. The law allows private companies to bid on local utility systems and has been criticized for enabling inflated valuations. Mary Grant, Water Policy Director for Food and Water Watch, stated that the provision creates a strong incentive for local boards to sell. She noted that corporations often raise rates after acquisition to recoup their investment.

Bill Ferguson, founder of Keep Water Affordable, said private firms are now targeting systems that are fully functional, not just those in distress. He cited his home in New Garden Township, which sold its wastewater and sewer authority to Aqua Pennsylvania in December 2020 for $29.5 million. Residents discovered a rate increase of more than 30% shortly after the deal closed. Ferguson has since traveled across the state to warn communities about similar proposals, including potential buyouts of the Chester Water Authority and the Bucks County Water and Sewer Authority.

In some communities, resident opposition has halted privatization efforts. In 2022, citizens in Towamencin Township voted for a Home Rule Charter prohibiting the privatization of public utilities. The township board officially terminated a proposed sale to American Water in 2024. Kofi Osei, a township supervisor who helped enact the charter, said he became involved after reviewing the township’s website and identifying the pending sale.

Food and Water Watch reports that water bills across the United States increased by 1.6 times the rate of inflation between 2015 and 2025. Grant said she hopes state legislators will prioritize repealing Act 12 to prevent further corporate control of local water infrastructure.