A City Council committee advanced changes to Philadelphia’s income-based Tiered Assistance Program and a proposal to standardize relief for unusually large catch-up water bills, moves that could increase costs for non-TAP customers citywide.
Council Committee Advances TAP Changes and Billing Relief
The committee approved measures that include the proposed expansion of TAP eligibility to households at 150% to 200% of the federal poverty level, which would reduce bills for new enrollees and shift costs to non-TAP payers.
Estimates diverge widely on potential enrollment and cost impacts, ranging from roughly 4,000 to as many as 40,000 additional participants and a corresponding bill effect from under 50 cents to $3 per month for non-TAP customers.
A related bill aims to ensure consistent reductions for homeowners who receive large makeup bills after meter upgrades.
For background, see the council debate over expanding TAP eligibility to 150% to 200% of the federal poverty level and related billing protections.
Auto-Enrollment Drives TAP-R Surcharge Increase in September
PWD has shifted to auto-enrollment for TAP, using data from other assistance programs to raise participation.
To fund higher discount volumes, the utility proposes a $4.43 monthly TAP-R surcharge increase for typical non-TAP residential customers beginning September 1st.
Combined with base rate changes already approved to start the same day, the typical residential bill would rise by more than $10.
A public hearing on the surcharge is set for May 10th before the Rate Board.
This follows automatic TAP enrollment and a proposed TAP-R surcharge increase beginning September 1st that broaden program participation and shift costs to standard bills.
Operational Exposure for Landlords and Master-Metered Properties
Owners who include water in rent or operate master-metered buildings will absorb the surcharge and base rate increases unless leases allow pass-throughs.
Where tenants pay water directly, higher rates can raise delinquency exposure, especially in buildings with lower-income households.
Proposed renter protections tied to landlord-controlled accounts could affect unit-level billing practices and service continuity in multifamily assets.
Budgeting Ahead as PWD Seeks 2025–2026 Increases
Separate from the 2024 changes, PWD has filed for multi-year increases that would bring the average non-assisted monthly bill to about $91.31 in September 2025 and $96.68 in 2026.
These requests, tied to rising operating and capital obligations, add to forward utility expense baselines and should be reflected in renewal pricing and reserve planning.
Details appear in the department’s request for multi-year rate increases in 2025 and 2026.
What Owners and Managers Should Watch Next
Watch for full Council consideration of the TAP eligibility expansion and renter billing fixes.
Enrollment growth under auto-enrollment will directly influence future TAP-R sizing and non-TAP exposure.
Monitor Rate Board proceedings for the May 10th hearing and subsequent decisions that finalize September billing changes.
In buildings where tenants cannot access TAP due to account structure, policy changes could alter billing coordination and arrears risk.