An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, in rates and distribution systems, providing for limitation on water and wastewater rate increases.

PRINTER'S NO. 2765
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2140
Session of
2026
INTRODUCED BY GILLEN, PROBST, WATRO, PUGH, KUZMA AND ZIMMERMAN,
JANUARY 13, 2026
REFERRED TO COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY AND
UTILITIES, JANUARY 14, 2026
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in rates and distribution systems,
providing for limitation on water and wastewater rate
increases.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 66 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
§ 1331. Limitation on water and wastewater rate increases.
(a) Limitation on residential rate increases.--
(1) The commission may not approve a rate increase for a
residential customer of a water public utility or wastewater
public utility under section 1307 (relating to sliding scale
of rates; adjustments), 1308 (relating to voluntary changes
in rates) or 1330 (relating to alternative ratemaking for
utilities) or a settlement agreement in a rate proceeding if
the percent increase in the rates charged to residential
customers exceeds the percent increase in the Consumer Price
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Index, calculated using available data for the most recent
12-month period for the northeast region immediately
preceding the filing date of the proposed rate change.
(2) Paragraph (1) shall apply only to the rates charged
to residential customers.
(b) Essential water and wastewater services.--In reviewing a
rate increase affecting residential customers of a water public
utility or wastewater public utility, the commission shall
prioritize affordability of water and wastewater service as an
essential service over recovery of capital costs that are not
necessary for the immediate maintenance of health and safety.
The commission shall reject a rate increase that fails to meet
the standard specified under this subsection.
(c) Postrecovery rates.--
(1) A rate increase or charge approved to recover costs
of an infrastructure upgrade or construction project may not
be collected after the public utility completes cost recovery
for the infrastructure upgrade or construction project.
(2) After the public utility completes cost recovery
under paragraph (1), the public utility shall file a tariff
that removes the costs incurred for the completed
infrastructure upgrade or construction project from the rates
charged.
(3) If the public utility fails to file a tariff under
paragraph (2), the commission shall proceed under section
1309 (relating to rates fixed on complaint; investigation of
costs of production) to review the existing rate.
(d) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
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"Consumer Price Index." The Consumer Price Index published
by the United States Department of Labor, Bureau of Labor
Statistics.
"Northeast region." The northeast region used by the United
States Department of Labor, Bureau of Labor Statistics, for
publication of the Consumer Price Index.
Section 2. This act shall take effect in 60 days.
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