Affordability

AWWA Policy Statement on Affordability

The American Water Works Association (AWWA) recognizes that providing reliable and high-quality water, wastewater, reclaimed water, and stormwater services at fair and reasonable rates and charges to all customers is fundamental to a utility’s mission.  To be financially sustainable, a utility must prudently manage capital, operating, and financing costs, and implement efficient business practices, promote and deploy water conservation and resource management best practices.

While the budget management of utilities plays a critical role in affordability, outside factors, such as local economic conditions (e.g., the job market) also impact on the communities and households that utilities serve, creating affordability challenges that, in turn, affect utility revenue.

AWWA strongly recommends a combination of practical policies, procedures, and assistance programs by utilities, regulators, and governmental entities to address the affordability challenges experienced by some of their residential customers.  Utilities should work closely with their local, state, tribal, indigenous, provincial, and national governments to ensure that applicable laws, regulations, and policies do not impede utility efforts to address affordability challenges. New policies should be evaluated for their impact

Customer assistance programs (CAPs) should be designed and implemented to meet the unique challenges of individual communities and may be considered as an appropriate component of system revenue requirements, with consideration of applicable laws, regulations, and policies. In addition, philanthropic capital, including contributions from foundations, private donors, and charitable organizations, can provide supplemental funding that supports CAPs, providing they comply with a utility’s regulatory (?) structure. Effective outreach efforts targeting low-income households are also important to build awareness about available assistance programs and strategies to use water more efficiently, and consideration should be given to the communication channels that can maximize reach to relevant populations.

Implementing long-term solutions to meet affordability challenges entails applying both existing tools and new technologies, along with modification of current government policies. Along with non-water service providers, effective and locally appropriate solutions can deliver assistance to households experiencing financial hardship (long-term and temporary) through collaboration with existing community service programs and non-governmental organizations (NGOs), customer assistance programs operated by other utilities and industries (such as energy service providers), and community housing assistance programs.

Practices specified in this policy statement are consistent with all other pertinent AWWA policy statements.

Adopted by the Executive Committee October 24, 2018. Revised January 13, 2024. 

Submit comments by November 20, 2026.