2006 Water and Wastewater Rate Survey Preliminary Results and Industry Trends

Raftelis Financial Consultants, Inc. (RFC), in conjunction with the American Water Works Association (AWWA), conducts a biennial water and wastewater rate survey (Survey). There are a number of preliminary findings from the Survey, including:Water and wastewater rates increased at about the same pace as inflation between 2004 and 2006, which is different from previous surveys which have found rates increasing faster than inflation;Medium-sized utilities continue to have the lowest water and wastewater rates; andUtilities in the Northeast and South have the highest residential water and wastewater charges, while utilities in the Midwest have the lowest water and wastewater charges.While these findings may change slightly as the survey results are finalized, we would not expect major changes. However, there is not guarantee that they will change materially.