Residents and businesses in Chester, PA, should prepare for an increase in water rates next year. The Chester Water Authority (CWA) recently announced that starting January 1, 2026, customers will see a 14% increase in their water bills.

According to the CWA, the rate hike is tied to financial concerns stemming from a proposed amended bankruptcy plan by the City of Chester receiver. This plan could potentially transfer CWA’s operations and outstanding debt to the city, a move the Authority warns would be financially disastrous.

In a letter sent to customers, the CWA stated:

“[Chester] is bankrupt with no credit worthiness whatsoever. As a result of this plan, Moody’s placed CWA’s historically strong Aa2 credit rating under review and has now downgraded our rating.”

The downgrade of CWA’s credit rating has made it more difficult for the authority to secure loans at favorable interest rates, directly impacting its ability to maintain affordable water services without adjustments to billing.

This rate increase highlights the ongoing challenges of managing essential utilities in Chester County and serves as a reminder for homeowners and real estate buyers to factor utility costs into their budgets.

Source: Chester Spirit, October 8, 2025