Guest Post by Shane Hoffman
The water industry is entering a period of increasing costs and declining consumption. Inflationary costs for water utilities are far outpacing normal inflationary costs as measured by the All Items Consumer Price Index (CPI). The need to replace aging infrastructure such as distribution mains and treatment facilities is expected to increase dramatically in the future. Further, in recent years water-saving devices and appliances coupled with increased awareness of conservation have decreased indoor and irrigation-related consumption. These two factors lead to lower revenue and higher costs over the long term. Given these trends, many utilities will need to pass rate increases to ensure financial stability and continued delivery of safe, high quality water. But success in rate increases isn’t always easy: to accomplish this, water utilities will need to develop a comprehensive strategy involving the areas of planning, policy, and communication.