The “CIRC” line on a northeast Pennsylvania water or sewer bill is a state-authorized infrastructure surcharge, known in Pennsylvania law as the Distribution System Improvement Charge (DSIC). It lets your utility recover the cost of replacing aging pipes, mains, meters, hydrants, and similar equipment between full rate cases. The charge is capped at 5% of your standard service charges for most utilities, and up to 7.5% for water and wastewater companies that show the higher amount is needed to keep service safe and reliable.1Supreme Court of Pennsylvania. J-86A-2020, J-86B-2020 and J-86C-2020 – Section 1358 Customer Protections It resets to zero every time new base rates take effect, then climbs again quarter by quarter as the utility completes more projects.
What the Charge Pays For
Pennsylvania’s DSIC statute lists exactly what qualifies. On the water side, that means replacement service lines, meters, hydrants, mains, and valves that have worn out, plus main cleaning and relining. On the wastewater side, it covers collection sewers, mains, service laterals, manholes, grinder pumps, lift stations, and similar components being replaced due to age, deterioration, or legal requirements.2Pennsylvania General Assembly. Pennsylvania Consolidated Statutes Title 66 Chapter 13
Here’s the boundary worth knowing: the surcharge cannot fund expansion into new territory to pick up more customers. Main extensions qualify only when they eliminate dead ends or fix a regional supply problem that poses a genuine health and safety risk to existing customers. If your CIRC is climbing, the money is going toward replacing something old, not building something new.
Why the Charge Keeps Going Up
The surcharge is a percentage, carried to two decimal places, applied to the total billed under the utility’s standard rates. Public fire hydrant charges are excluded.3Aqua America. Aqua Pennsylvania Tariff Water – PA PUC No 4 Because it’s a percentage of your usage charges rather than a flat fee, heavier water users pay a bigger dollar amount.
The percentage updates every quarter to reflect eligible property the utility placed in service during the three-month period ending one month before the new rate takes effect. The utility must file the supporting data with the PUC and serve it on the Office of Consumer Advocate and the Office of Small Business Advocate at least ten days before the update goes live.4Pennsylvania General Assembly. Pennsylvania Statutes Title 66 Public Utilities 1357
One big driver right now is federal. The EPA’s Lead and Copper Rule Improvements, finalized in October 2024, require every drinking water system in the country to identify and replace lead service lines within ten years, lower the threshold for protective action, and communicate with customers about lead pipe locations and replacement plans.5US EPA. Lead and Copper Rule Improvements Northeast Pennsylvania utilities are accelerating lead line replacement on that ten-year clock, and the DSIC is one of the main tools paying for it between rate cases.
Watch for the reset. When your utility’s next base rate case takes effect, the DSIC drops back to zero. You’ll see a noticeable dip on one bill, then the percentage will start climbing again.
How to Check Whether Your Bill Is Correct
Before assuming the surcharge is wrong, rule out a hidden leak that’s inflating your usage (and therefore the dollar amount of your CIRC). Turn off every water source in and around the house, then look at your meter. Most have a small red or silver indicator dial. If it’s still moving, you have a leak.
To narrow it down, close the main shutoff where the water line enters the house. If the dial keeps moving, the leak is between the meter and the house. If it stops, the leak is inside. Toilets are the usual culprit. Put a few drops of food coloring in the tank, wait ten minutes without flushing, and check the bowl. Color in the bowl means the flapper is leaking. Outside, walk your irrigation lines and look for wet spots, broken sprinkler heads, or dripping hose bibs.
Once leaks are ruled out, pull up your utility’s current tariff. Aqua Pennsylvania and Pennsylvania American Water both post theirs online, and the DSIC page shows the approved percentage for the current quarter.3Aqua America. Aqua Pennsylvania Tariff Water – PA PUC No 4 Multiply your base service charges (leaving out fire protection) by that percentage. If the number doesn’t match the CIRC line on your bill, you have a real reason to call. Have your account number, the billing periods in question, and the bills themselves in front of you before you dial.
If You Think the Charge Is Wrong
Start with the utility’s customer service line. A lot of billing discrepancies turn out to be meter-read or data-entry errors that get fixed in one call.
If the utility’s answer doesn’t satisfy you, file an informal complaint with the PUC’s Bureau of Consumer Services. You can file online, call 1-800-692-7380, or mail a complaint to the Bureau of Consumer Services at 400 North Street, Harrisburg, PA 17120.6Pennsylvania Public Utility Commission. Consumer Complaints Procedures Guide A BCS representative contacts the utility, reviews the dispute, and issues a written decision. The statute requires this “within a reasonable period of time” rather than a fixed deadline, though the utility has to give the BCS any requested information within 30 days. The decision binds both sides unless someone escalates.7Pennsylvania Code and Bulletin. 52 Pa Code 56.163 – Commission Informal Complaint Procedure
A formal complaint is the escalation. It opens a legal proceeding before an administrative law judge, with testimony and exhibits. The PUC recommends trying informal first because most billing issues resolve faster that way.8Pennsylvania Public Utility Commission. Complaints Pennsylvania’s Office of Consumer Advocate exists to represent ratepayers in PUC proceedings and reviews every quarterly DSIC filing, so it’s worth contacting that office as well, particularly if your concern is with how the surcharge was calculated rather than with a one-off billing error.
If the Bill Is Right but Hard to Afford
If the surcharge isn’t wrong but your bill is a stretch, Pennsylvania’s Low-Income Household Water Assistance Program (LIHWAP) provides grants to households at or below 150% of the federal poverty guidelines who are behind on water bills, facing shutoff, or already disconnected. Apply through Pennsylvania’s COMPASS system at compass.state.pa.us, through your local County Assistance Office, or by requesting a paper application from the Department of Human Services. The account doesn’t have to be in your name as long as you can show you’re responsible for paying the bill.