Rates, Regulators, & Reality – Affordability Challenges in a Bad Economy

Rate-payer affordability and community's financial capacity are at the forefront of an ongoing national environmental policy discussion. While clearly an important topic to utilities and anyone interested in public health, the environment, or public policy, the discussion is complicated by the inconsistent use of terms, inadequate attention to fundamentals, and a distinct lack of usable data.This paper proposes a simple clarification in the use of terminology, and suggests some first steps for utility managers seeking to address affordability concerns in their communities. The value of the increasing attention to affordability and financial capacity is also reduced because very few States have a comprehensive and recent water & wastewater rate survey to use a basis for discussion. This paper describes Missouri's compilation of a current water and wastewater rate survey and its implications to rate-payer affordability and community financial capacity.