Meeting Water Affordability Challenges in the Era of the Unexpected

Abstract

The vast majority of Americans depend on a public water supply for the procurement and delivery of their water. Water providers secure water supply for the future and build and maintain the infrastructure needed for delivery and ensure it can maintain this service for newcomers. This system has worked for many decades in part because of the cost of water and construction were relatively low. In the past twenty years, water rates have increased at twice the rate as inflation. At the same time, income has remained stagnant. Cities have a heightened challenge because their populations are booming at a time when current water supplies are not sufficient for projected growth. Further, the majority of the nation’s water infrastructure has been left unattended. In addition, costs for adaptation of systems for climate change increases cost estimates substantially. All of this must be paid for the utility and the majority will come from collected revenues. This paper proposes alternatives that should be considered by water providers to assist affordability customers while effectively managing utility budgets.

Keywords: water service, wastewater, water affordability, water markets