Private Water Bills Run 82% Above Public Systems
Pennsylvania operators served by private utilities should factor in steeper, continuing rate increases in their cost planning.
Updated on Nov. 3, 2026 in Utilities
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Private water customers in Pennsylvania paid an average of $1,172 a year in 2026 versus $643 for local government systems, an 82% gap, according to a Food and Water Watch analysis of the state's 17 largest community water systems. Operators in utilities and in regulated water-dependent businesses should note the widening price gap between ownership models.
Why it matters
The analysis ties much of the gap to Pennsylvania's 2016 Act 12, which allowed private companies to inflate purchase prices for public systems, and private owners then raised rates to recover those costs. Private acquirers have increasingly bought fully functioning, financially sustainable utilities rather than only failing ones.
Corporate-owned systems serve 31% of Pennsylvania residents, according to EPA data, and Aqua Pennsylvania paid $29.5 million in December 2020 for New Garden Township's sewer and wastewater authority. Typical household bills across the 17 examined systems rose an average of 65% between 2015 and 2025.
The players
Food and Water Watch
A national advocacy organization that campaigns on water and food policy and published the analysis comparing private and public water bills.
Aqua Pennsylvania
A subsidiary of Essential Utilities that operates regulated water and wastewater systems in Pennsylvania and acquired the New Garden Township sewer authority in 2020.
American Water
The largest publicly traded U.S. water utility, owning regulated water systems across multiple states, including four Pennsylvania community systems ranked among the country's 10 costliest.
The details
Under Act 12, private companies could pay higher acquisition prices for public water systems, and those higher purchase costs were then recovered through increased customer rates. New Garden Township ratepayers reported that rates rose more than 30% after Aqua Pennsylvania's 2020 purchase. American Water and Aqua Pennsylvania own four community systems ranked among the country's 10 costliest.
Timeline
2016: Act 12 enacted, allowing private companies to inflate purchase prices for public water systems.
December 2020: Aqua Pennsylvania bought New Garden Township's sewer and wastewater authority for $29.5 million.
2015-2025: Typical household bills rose an average of 65% across the 17 examined systems.
November 3, 2026: Food and Water Watch published its private-versus-public water bill report.
Market Landscape
Pennsylvania's 2016 Act 12 set the pattern under which private utilities have acquired public water systems at premium prices and then recovered those costs through rates. The 2020 Aqua Pennsylvania purchase of New Garden Township's sewer authority illustrates that pattern in practice.
Operators whose costs depend on water or wastewater service should factor in continued rate increases where systems are privately owned and review billing statements for acquisition-related surcharges. Companies in water-intensive operations should consult qualified accountants on how utility cost trends affect their budgets.
The takeaway
The price gap between ownership models is a cost line to track, especially in communities where a sale of a public system is under consideration. Operators should watch for acquisition announcements in their service territory and ask their utility provider for rate history before any sale closes.
Further reading
For context on how utility ownership shapes rates, see Utilities coverage across Pennsylvania.
Source note: This article includes information reported by The Cool Down.
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