The Value of Water



Executive Summary

• Americans are not accustomed to paying, and have been largely unaware of, the true cost of treating and delivering clean, safe water to their taps. Americans pay less for water – about a penny per gallon on average – than do residents of most other developed nations. Water is also typically the lowest percentage utility cost per household, less than gas/oil, telephone and electricity.
• The historic under-pricing of water is largely due to a perception that water is “free” – a fundamental human need supplied by the earth itself. The vast infrastructure required to treat and deliver that water where it is needed, however, is far from free.
• An historic lack of investment in infrastructure has left the nation’s vast network of water systems in serious disrepair, warranting a D- grade from the American Society of Civil Engineers. Every two minutes a significant water line ruptures in the U.S., resulting in trillions of gallons water wasted annually and severe economic losses to businesses.
• The price tag to bring water and wastewater systems up to date is projected to be close to $1 trillion over the next 20 years – a cost that consumers will have to share.
• Because the majority of water funding comes from revenues generated by pricing, it will take a major shift, then, in the way water is priced if the U.S. is to continue to meet its infrastructure needs.
• There are encouraging signs of acceptance of this new water reality. Recent surveys point to changing perceptions of water’s worth among consumers and industry alike, as both grow increasingly aware of its critical role in every aspect of life. In addition, U.S. municipal water prices have been rising at a rate faster than the overall cost of living since 2007. This helps pave the way for rate structures that reflect the true cost of water treatment and delivery.
• Full-cost pricing will not only help water utilities continue to provide customers with safe and clean water but will have the added benefit of encouraging more conservative use, ensuring a sustainable supply for future generations.

The Value of Water
Executive Summary
• Americans are not accustomed to paying, and have been largely unaware of, the true cost of treating and delivering clean, safe water to their taps. Americans pay less for water – about a penny per gallon on average – than do residents of most other developed nations. Water is also typically the lowest percentage utility cost per household, less than gas/oil, telephone and electricity.
• The historic under-pricing of water is largely due to a perception that water is “free” – a fundamental human need supplied by the earth itself. The vast infrastructure required to treat and deliver that water where it is needed, however, is far from free.
• An historic lack of investment in infrastructure has left the nation’s vast network of water systems in serious disrepair, warranting a D- grade from the American Society of Civil Engineers. Every two minutes a significant water line ruptures in the U.S., resulting in trillions of gallons water wasted annually and severe economic losses to businesses.
• The price tag to bring water and wastewater systems up to date is projected to be close to $1 trillion over the next 20 years – a cost that consumers will have to share.
• Because the majority of water funding comes from revenues generated by pricing, it will take a major shift, then, in the way water is priced if the U.S. is to continue to meet its infrastructure needs.
• There are encouraging signs of acceptance of this new water reality. Recent surveys point to changing perceptions of water’s worth among consumers and industry alike, as both grow increasingly aware of its critical role in every aspect of life. In addition, U.S. municipal water prices have been rising at a rate faster than the overall cost of living since 2007. This helps pave the way for rate structures that reflect the true cost of water treatment and delivery.
• Full-cost pricing will not only help water utilities continue to provide customers with safe and clean water but will have the added benefit of encouraging more conservative use, ensuring a sustainable supply for future generations.

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