Water Prices Are Rising Across The Nation, But It’s Still Too Cheap.

Arguably one of the most underplayed issues we face is the availability of water. In an on-demand world, many of us expect things to just be there. But with the ongoing droughts across many parts of the U.S., the media seems to picking up on how it’s hitting people in the pocketbook. USATODAY analyzed water bills across the country and found rates at least doubled in more than twenty-five percent of the locations, with some even tripling.

The report also cited survey results that U.S. water systems will need as much as $1 trillion in infrastructure improvements by 2035 to stay up with current trends. The map to the left shows some of the areas where rates have risen the most. Curiously, some of the most drought-stricken regions don’t seem to be represented.

A few other things jumped out from the piece.

“U.S. homeowners who reduce their water consumption in an effort to save money can cut their costs. But they may end up raising the rates they’re charged. Why? Because water suppliers collect less income as consumption drops, but ongoing costs — such as bonding debt, salaries and chemicals — either increase or, at best, remain stable.”

No hefty calculations required to realize that’s a little backwards. The model for water districts and municipalities needs to be configured to incentivize customers. In West Texas, Midland appears to be getting the message.

“In March, the Midland, Texas, City Council unanimously imposed a five-fold price increase on water customers who use more than 10,000 gallons per month, which surpasses consumption for a typical family.”

But we’re still a bit baffled. How can customers use 10,000 gallons of water per month? We’re a family of four and we’ve been aggressive enough to stay below 500 gallons. What gives? We’ll detail some of the things we do in another segment.