With all that’s happening in the world today, an article in the New York Times on July 14, 2023, did not receive as much attention as it deserved. The article pointed out that “average water and sewer bills [in the U.S.] have increased about 50 percent over the last decade … and are expected to increase further.” *
The article is based on numerous studies including an August 20, 2021, study by Bluefield Research. According to their study, the reasons for the jump in water prices over the past decade are due to several factors, some of which we have heard about before and new ones that have recently evolved. Among these are the following:
Aging water infrastructure. This has been an issue for more than 30 years. What’s different now is that utility companies around the country can no longer ignore it. The bandages placed on water infrastructure in the past no longer do the job. Entire infrastructure systems must now be rebuilt.
Inflation. The inflationary pressures of the past two years that have impacted consumers and businesses around the country have also impacted water utility companies. Utility companies are paying more for all types of products and services they need to operate, and these costs are now being passed on to their customers.
Politics. While the Bluefield study did not go into details, it did report that “public [water] utility rates are influenced significantly at a political level.” Another study, “Re-Theorizing Politics in Water Governance,” indicates that several government bureaucracies are involved with water, water treatment, water delivery, and even what was termed “who gets what” when it comes to water delivery, all of which can result in water rate increases.
The pandemic. This relates to politics. Government officials pressured many water utility companies not to increase water rates during the pandemic. Most obliged, and rate increases that were necessary at that time were postponed. With the pandemic over, many of these utilities have been forced to raise rates significantly to cover delayed increases.
Financial challenges. Several economic challenges beyond infrastructure expenditures are impacting water utility companies in the U.S. However, the study added that “each [utility company] faces unique challenges that impact water rates … there is no formula or pattern, from utility to utility” that impacts all.
Supply chain disruptions. While many manufacturers in the country were waiting for weeks and months for supplies from overseas vendors, utility companies were waiting for supplies as well. In some cases, when these supplies were finally delivered, they were more costly than initially planned. Further, while waiting for supplies, some utility companies had to find ways to “make do” and use items they had intended to replace, negatively impacting their operating costs.
Climate change. As if there were an elephant in the room — an obvious problem that no one wanted to discuss — the changing climate has increased water rates. “Climate change continues to have an impact on water infrastructure,” says Charlie Suse, an analyst with Bluefield. Plus, “we expect drought conditions to continue to impact rates in many cities.”
It’s a supply and demand issue now. Less water means higher prices.
The Takeaway
The New York Times article and Bluefield Research appear to have come to the same conclusion: water rates are going up and will continue to do so.
Does this mean we should take shorter showers to keep water rate increases in check? No, we have long past that advice.
What needs to be done is to use water efficiently — a long-term reduction in water consumption — and eliminate water waste. According to the Times article, “bathrooms are a good place to start. They may account for more than half the water families use indoors.”
This same is often true in commercial facilities. Installing more water-efficient fixtures, including restroom fixtures that use no water at all, and “smart” meters that notify consumers when they are using water excessively or beyond average consumption, can help reduce water consumption by millions if not billions of gallons of water per year.
Klaus Reichardt is CEO and founder of Waterless Co, Inc, pioneers in advancing water efficiency. Reichardt founded the company in 1991 with the goal of establishing a new market segment in the plumbing fixture industry with water efficiency in mind. Reichardt is a frequent writer and presenter, discussing water conservation issues. He can be reached at klaus@waterless.com
*“Water Bills Are Rising. Here’s What to Do About It,” by Ann Carrns, published in the New York Times, July 14, 2023.
