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PWSA - Pittsburgh Water and Sewer Authority

10/17/2024 | Press release | Distributed by Public on 10/17/2024 11:38

PWSA Receives $69 Million in Grants and Low-Interest Loans from PENNVEST

Injection of funding provided by the Bipartisan Infrastructure Law expedites replacement of 10 miles of water mains, hundreds of lead service lines in five Pittsburgh neighborhoods
PWSA contractor crews replace lead service line in Manchester

Pittsburgh, PA - Block-by-block, neighborhood-by-neighborhood, the Pittsburgh Water and Sewer Authority (PWSA) is proactively replacing aging water mains and removing lead service lines. The $69 million award, recently received from the Pennsylvania Infrastructure Investment Authority (PENNVEST), provides funding to continue this essential work to protect public health and enhance water reliability across our drinking water service area.

This funding, provided by the Bipartisan Infrastructure Law (BIL), is split between a $5 million grant that does not need to be repaid, and a $64 million low-interest loan. It will save our ratepayers approximately $85 million over the next thirty years when compared to traditional financing through municipal bonds.

"We thank the Board of PENNVEST, Governor Shapiro, the EPA, and the Biden Administration for their continued support to make PWSA's water system lead-free with this award," said PWSA CEO Will Pickering. "These projects allow PWSA to replace aging water mains, remove lead service lines, and strengthen our drinking water system for generations to come."

With this award, PWSA estimates replacing 10 miles of aging water mains across five Pittsburgh neighborhoods including Brighton Heights, Squirrel Hill, North Point Breeze, Bloomfield, and Lower Lawrenceville. We'll also replace 1,046 lead service lines - specifically, 483 private and 563 public lines. Proactively removing lead service lines is the most effective way to eliminate the presence of lead in drinking water.

Meeting Federal Standards

Since its inception in 2016, our Community Lead Response has concentrated on providing community resources and education on the dangers of lead in drinking water, optimizing the water treatment process to reduce corrosion of lead lines, and replacing all residential public and private lead lines in the system. As an industry leader in lead line replacements, PWSA has consulted with water utilities and governments across the country on best-practices for their programs.

Low-interest loans and grant funding makes it possible for PWSA to fund more lead service line replacements annually. PWSA is nationally recognized for its quick and efficient usage of federal infrastructure dollars. With the new Lead and Copper Rule revisions, we are prepared to comply with the standards established by federal regulators thanks to the development of our robust Community Lead Response program.

Investing in Our Future

As stewards of a vital public resource, PWSA is committed to protecting the public health of our customers by reducing lead levels and replacing lead lines at no direct cost to ratepayers. To date, we have replaced more than 11,600 public lead service lines and more than 8,000 private lines in our drinking water system. We are prioritizing this work to improve the quality and safety of drinking water for current and future generations of Pittsburgh families.

"Pursuing alternative funding streams, like PENNVEST, allows us to put ratepayer dollars towards other ambitious infrastructure investments while reducing the financial burden on our customers," said Ed Barca, PWSA's Director of Finance.

Since 2018, PWSA has received from PENNVEST a combination of $81 million in grants and $702 million in low-interest loans, totaling $783 million. Pursuing external funding from state and federal partners helps reduce the cost to ratepayers over time during an unprecedented level of investment in our essential water systems.

As a publicly owned and operated water utility, every dollar we receive is reinvested directly back into the water systems that serve those living and working in Pittsburgh. To learn more about our finances and use of ratepayer dollars, please visit https://www.pgh2o.com/about-us/finance.

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