Private Water Bills Run 82% Above Public Systems

A Food and Water Watch analysis finds Pennsylvania households served by private water companies pay far more than those served by local governments.

Updated on Nov. 3, 2026 in Utilities

Private Water Bills Run 82% Above Public Systems

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Pennsylvania customers of private water companies paid an average of $1,172 a year, compared with $643 for local government systems, according to Food and Water Watch. Typical household bills across 17 of the state's largest community water systems rose an average of 65% between 2015 and 2025.

Why it matters

The systems examined serve 42% of Pennsylvania's population, so the findings reach a large share of residents. The analysis links the gap in part to a 2016 state law that allowed private companies to pay higher prices to acquire public water systems and then raise rates to recover those costs.

Pennsylvania households served by private water companies paid roughly $529 more per year than those served by local governments, based on the analysis of 17 systems. Whether similar gaps exist across all smaller systems in the state was not addressed in the findings.

The players

Food and Water Watch

A national nonprofit advocacy group that campaigns against privatization of water and food systems and published the Pennsylvania analysis.

Aqua Pennsylvania

A subsidiary of Essential Utilities that operates water and wastewater systems in Pennsylvania and bought the New Garden Township sewer authority in 2020.

American Water

One of the largest publicly traded water utilities in the United States, which owns community water systems in Pennsylvania ranked among the country's costliest.

The details

Food and Water Watch examined the state's 17 largest community water systems over the decade. The group said private companies paid higher prices to buy public systems, then increased rates to recover those purchase costs, and that companies increasingly acquire financially sustainable utilities rather than only failing ones.

Timeline

  1. 2016: Act 12 enacted, allowing private companies to inflate purchase prices for public water systems.

  2. December 2020: Aqua Pennsylvania bought New Garden Township's sewer and wastewater authority for $29.5 million.

  3. 2015-2025: Period over which typical household bills rose an average of 65% across the examined systems.

  4. November 3, 2026: Food and Water Watch published its report on private versus public water bills.

Roadmap

The bill gap traces back to Pennsylvania's 2016 Act 12, which allowed private companies to inflate purchase prices for public water systems. Private acquisitions have since moved toward financially sustainable utilities rather than only failing ones, extending the trend Act 12 set in motion.

Pennsylvania residents served by private water companies face bills averaging $1,172 a year, versus $643 for local government customers. Households on either system have seen typical bills rise sharply over the past decade, which affects monthly budgets directly.

The takeaway

Ownership structure appears to matter for water costs, so residents comparing service options may want to look at who owns their system and how rates have changed over time. Local rate filings can show how acquisition costs are being recovered.

Further reading

For more on how utility ownership shapes costs, see Utilities coverage on Pennsylvania Utilities.

Source note: This article includes information reported by The Cool Down.

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