Model Water Utility Affordability Programs

T he issues of affordability and assistance for low-income customers are becoming a higher priority for the water industry as rates continue to rise in order to finance needed infrastructure investments. As one element of a proactive engagement strategy on this topic, AWWA’s Rates & Charges Committee formed an Affordability Sub-committee to focus on the emerging issues related to water affordability. This subcommittee has developed webcasts; updated chapter text for the 7th edition of AWWA’s manual of practice, M1, Principles of Water Rates, Fees, and Charges; and organized sessions at AWWA conferences, such as the session at AWWA’s 2016 Annual Conference & Exposition (ACE16) upon which this article is based (Matichich 2016). The following two case studies—of Portland, Ore., and Detroit, Mich.—outline low-income assistance programs that may be particularly instructive for utilities as they address water affordability and potential programs for customer assistance. The first case study, showcasing the program run by the Portland Water Bureau, describes the origins of their program and how it has evolved in the face of changing needs and circumstances to become one of the most comprehensive in North America. The second case study illustrates a proactive program developed recently by the Detroit Water & Sewerage Department (DWSD) to address a significant need for low-income customer assistance and the need for different business processes based on a history of high delinquency rates and payment challenges. CASE STUDIES FROM