Featured Report: Assessing Water System Revenue Risk
The Environmental Finance Center and Ceres partnered to produce a new report that investigates water system revenue risk and considerations for market analysts.
Water utilities are on the brink of extraordinary investments to replace aging infrastructure—the Environmental Protection Agency estimates that by 2030, capital expenditures of more than $300 billion will be needed to safeguard drinking water. Yet this investment comes at a time when Americans’ water use habits are changing—resulting in considerable uncertainty for water systems planning capital programs to replace or expand their assets.
The report offers an analysis of revenue risk using actual utility data in three states that are experiencing changing water use patterns: Colorado, North Carolina, and Texas. As our analysis demonstrates, utilities with the same generic pricing structure can have widely variable exposure to revenue instability from changes in customer use.