Poverty and a mandate for change
With a poverty rate exceeding 25%, Philadelphia faced a critical affordability crisis. In 2016, the City Council mandated a complete overhaul of Philadelphia Water Department’s (PWD) customer assistance programs to address affordability challenges. PWD had to pivot from standard usage-based billing to a complex, income-based model—an industry-first undertaking. The constraints were severe: the program had to launch by a strict deadline of July 1, 2017, and required a technical solution capable of integrating sophisticated eligibility logic with the City’s legacy billing system.
From policy design to custom software
Raftelis partnered with PWD from concept through implementation, providing integrated policy, financial, and technology expertise across three major workstreams.
- Program design and financial modeling: Collaborated with City policymakers to design the Tiered Assistance Program (TAP), balancing legislative mandates with financial sustainability through rigorous revenue forecasting.
- Custom software solution: Developed the Customer Assistance Management Program (CAMP) to serve as the operational backbone, automating complex eligibility logic to ensure customers receive the most beneficial rate and managing connections with other systems, data, and processes.
- Implementation and knowledge transfer: Delivered extensive training and on-site support to ensure operational readiness for the hard deadline. Established long-term protocols for software releases and created comprehensive documentation to empower City staff to manage the system independently.
Tangible results for the City and its residents
The project successfully transformed PWD’s approach to affordability, launching on time despite the technical complexity.
- Universal access: Replaced fragmented application processes with a single "universal application." The system automatically routes customers to the most beneficial program, eliminating administrative guesswork.
- Financial recovery: Implemented a debt forgiveness structure that incentivizes consistent payments, helping vulnerable customers clear past debt while reducing the utility's long-term bad debt exposure.
- Real-time visibility: The integrated reporting suite provided PWD with immediate insight into program and participation metrics—data that is now critical for the utility rate-setting process.
A new standard for the industry
By shifting from a reactive discount model to an income-based structure, PWD has future-proofed its affordability strategy. The CAMP software provides a scalable foundation that evolves with changing policies, while data-driven insights allow the utility to balance financial sustainability with social responsibility. Philadelphia has since become a national model for utilities seeking to implement income-based billing.
