Chester Receiver Calls for Public Hearings into CWA’s Proposed 14% Rate Hike
The announcement late Friday by CWA that it plans to raise water rates by 14% on Jan. 1, 2026, blindsided ratepayers and, though heavy on blame, lacked financial information that would justify such a significant increase. Typically, a water utility would need to justify rate increases through a rate case before the Pennsylvania Public Utilities Commission. Although CWA is not subject to this requirement, it still has an obligation to its ratepayers to clearly and publicly justify the need for such an increase – not simply to lob accusations.
In order to protect the ratepayers of Chester and to preserve the value of CWA as an asset, the Receiver for the City of Chester is calling for an independent audit into CWA’s finances and a review of CWA’s management, operations and legal expenses. Further the Receiver is demanding that CWA publicly provide the same information that a private utility would be required in a rate case before the PUC and to hold public hearings before enacting any rate increase.
“Once again, CWA is pointing fingers without providing the facts and transparency that ratepayers deserve,” said Chester Receiver Vijay Kapoor. “Simply put, CWA needs to prove the need for this rate increase and to allow the public to have their say.”
Below is a letter from Chester Receiver Vijay Kapoor to CWA Chair Noel Brandon responding to CWA’s actions.
Dear Chairman Brandon,
Late on the afternoon of Friday, October 3, the Chester Water Authority (“CWA”) sent an email to ratepayers informing them of a 14% increase in water rates, effective January 1, 2026. This same email and linked letter blamed the Office of the Receiver for the City of Chester for its efforts to secure a fair and equitable deal for the residents of the City.
Though heavy on blame, CWA’s letter to ratepayers provides little transparency into CWA’s finances and its management. Further, it raises a host of questions including:
Who were the financial institutions that declined to provide financing, what actual efforts did CWA make to obtain such financing, and what is the documentary evidence for why those institutions refused to participate?
Who is the specialty lender who offered the refinancing and what were the rates and terms?
How much does the City of Chester owe in unpaid water bills, and why didn’t CWA file a proof of claim against the City for those amounts?
How much is CWA spending on its marketing and billboard campaigns to fight monetization?
How much is CWA spending on legal representation? Why has CWA acted in such an inappropriate way that the Bankruptcy Court is currently considering sanctions against it and its law firms?
Did CWA keep rates artificially low in previous years and is now needing to significantly raise them?
While we recognize the need to gradually increase rates as part of an authority’s normal course of business, CWA has not provided any supporting financial information that would justify such a significant increase. CWA also raised the possibility of future rate increases, without providing any evidence as to why they will be needed. As you know, a private utility would be required to justify rate increases via a rate case in front of the Pennsylvania Public Utilities Commission (“PUC”). Although CWA is not subject to the same requirements as a private utility, CWA has an obligation to its ratepayers to clearly and publicly justify the need for such an increase – not simply to lob accusations.
In order to both protect the ratepayers of Chester, as well as to preserve the value of CWA as an asset, we are requesting the ability to conduct an independent audit into CWA’s finances and a review of the CWA’s management, operations and legal expenses. Further, we are calling on CWA to publicly provide the same information that a private utility would be required in a rate case before the PUC and to hold public hearings before enacting any increase. Given that CWA’s proposed increase will not take effect until January 1, 2026, there is time for CWA to provide this information and hold these hearings.
I look forward to your response.
Sincerely,
Vijay Kapoor
Receiver for the City of Chester