Tag: water affordability (Page 4 of 6)

Won’t you pay my Bill? | Pathways to Getting Some Customers to Help Pay the Bills of Others

“Won’t you pay my bill?” is a question that the water utility asks of the customers who do not pay their water, wastewater, and even stormwater bills. But low-income customers are, essentially, asking the same question: will you—higher income customers—help pay the water bills of the poor?

National organizations like the American Water Works Association have policies related to non-payment. AWWA says “[f]ailure on the part of the customer to pay a water bill for services rendered necessitates that other customers bear the costs associated with the non‐payment of water service.”

But is it worth it to the water utility to use the rate revenues from one group of customers to subsidize the rates of another group of customers via an assistance program? More than that, is it even legal?  Continue reading

Using Utility-Level Data to Study the Affordability of Water Rates

The affordability of water and wastewater rates is an issue attracting more attention than ever.

In particular, “A Burgeoning Crisis? A Nationwide Assessment of the Geography of Water Affordability in United States”—a recent paper from Michigan State University— has generated a great deal of debate and dialogue about the issue. The paper is worth reading for yourself, but the primary conclusion is that over the next five years, at least 35.6% of the U.S. population will have combined water and wastewater bills greater than 4.5% of their community’s median household income. One aspect of the paper that stood out to us here at the EFC was the numerator in that calculation—i.e. the combined bill.

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How Two Private Water Companies are Changing New York Water Affordability

The New York Public Service Commission entered an Order Adopting Low Income Modifications in May 2016, which applied to commission-regulated gas and electric utilities in New York. The Commission established within the Order a robust regulatory policy framework for addressing low-income electric and gas customer needs. Despite this major advancement in addressing affordability issues for regulated energy utilities, private water utilities in New York have yet to implement large-scale, low-income water customer assistance programs (CAPs)—but this appears to be changing.

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Four Factors that Allow One Utility to Provide Financial Assistance to People Who Don’t Even Have a Water Account

When setting rates, most water and wastewater utilities are concerned (at least to some extent) about whether their customers can afford the resulting bills. Many utilities are also wondering how they can assist the poorest segments of their customer base with the cost of water/wastewater service. However, a frustrating problem is that a lot of low income people live in multifamily housing, such as apartments, and do not actually have an account with the water utility. Even though they don’t receive a bill directly, these tenants are paying for the water/wastewater service indirectly via their rent. So some utility managers have been grappling with effective ways to provide assistance to these water users. Different theories involving vouchers etc. have been espoused, but one utility seems to have actually solved the problem.

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