Graham Sustainability Institute

Water Affordability based on Income: The Tiered Assistance Program in Philadelphia

June 2018

The Philadelphia Water Department has the task of maintaining an aging water system while providing affordable service in a city where 26 percent of city residents live at, or below, the poverty line. Philadelphia Water had addressed water affordability through an assistance program. Residents below 250 percent of the federal poverty level could apply for the Water Revenue Assistance Program (WRAP), which provides $200 per year for water bills and $300 for past due balances. Despite this program, between April 2012 and January 2018, unpaid bills and water debt affected over 40 percent of Philadelphia households. Twenty percent of all household accounts or 86,000 customers, experienced at least one shutoff, and 40,000 households were eligible for shut offs as of May 2017. For the Philadelphia Water Department, unpaid bills and water debt represent over $242 million in uncollected revenue. 

Case study