What is Water Worth?

How much should we pay for water? Not how much WOULD you pay, but what SHOULD you pay? I know many great leaders in the water industry that advocate our water bills are just a fraction of their true value. That we should be raising rates even more aggressively.

But what do everyday Americans think? Well, my informal polling has been that people are getting more and more frustrated by the rising cost of water. However, this poll from Water Finance & Management shows a more data driven approach. It’s 1000 voters across America in March 2024.

Regardless of our opinion in the water industry of how much we should be paying for water the reality is that 30% of this polling group said it’s already too much! How do we balance this with the trends of failing infrastructure and the hundreds of billions needed to keep our systems online?

A troubling trend has emerged where an increasing number of voters find their water bills unaffordable, coinciding with a call for greater investment in our water infrastructure.

The Rising Tide of Costs

Voter concern about water affordability is not unfounded. The cost of water services has been on an upward trajectory, fueled by a combination of aging infrastructure, inflation, and escalating material costs. As utilities grapple with these economic pressures, they also face diminishing state and federal support. A detailed analysis by the U.S. Treasury highlights a decline in infrastructure funding, down from over 20% in the 70’s to around 15% today. This reduction in state and federal investment places a significant burden on local utilities and, by extension, consumers.

The water sector is faced with so many external economic forces: soaring materials costs, new regulatory requirements, and an aging workforce. These elements combine to create a perfect storm that threatens the sustainability and affordability of water services.

How do we respond to these challenges as a water industry? With the same approaches we have used for the last 40 years? Or do we need new approaches?

Rallying Around Technology

In response to these daunting challenges, water utilities are not standing idle. Instead, they are working to harness technology as a even more powerful tool in their arsenal. Each year American Water Works Association (AWWA) does a survey for utilities and their drivers. The majority of utilities (64.8%) are actively working to better connect their information technology and operational technology databases. The numbers below drive a compelling message to utilities that it’s now a matter of “how” not “if” they will adapt and start to implement more water technology in their system.  

Conclusion

As costs increase and federal support decreases, it’s up to each utility to take control of their systems using technology. By investing in and embracing technology based solutions, water utilities can safeguard resources, reduce costs, and ensure that clean, affordable water remains accessible to all.

This unified move towards technological innovation reflects our collective commitment to not only survive but thrive in the face of adversity. Exactly what that looks like is unique for each utility. It is clear that technology is one of our strongest tools to fix the ongoing issues of affordability and sustainability of water services.

If you don’t already have a technology roadmap for your utility or your specific team at the utility what is stopping you?  

Join the majority of water utilities and take a technology driven approach for today’s challenges.

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Make sense to connect?

Are you working to help your utility or technology company take the next step forward? If you want to talk through a challenge or share something interesting your team did please shoot me a note at [email protected] or schedule a 15 minute call here.