The Affordability Gap In Utility Services

1. The Affordability Gap In Utility Services Mark Schuling Iowa Consumer Advocate NASUCA Santa Fe, New Mexico June 2, 2014

2. ELECTRIC • “By 2030, the electric utility industry will need to make a total infrastructure investment of $1.5 to $2.0 trillion.” -The Brattle Group, Transforming America’s Power Industry

3. GAS • Through 2030, the gas pipeline and storage utility industry projects investment needs of $133 to $210 billion in infrastructure. - INGAA Foundation report October 20, 2009

4. WATER • “The U.S. faces unmet water and wastewater infrastructure needs of approximately $600 billion over the next 20 years.” - NARUC letter to the Honorable Tom Reed May, 24, 2013

5. TREND TO WATER PRIVATIZATION • Five times as many deals in 2010 then in prior years • Budget shortfalls and the need for water infrastructure were the main factors -Food & Water Watch November 2010

6. THE AVERAGE WATER BILL • The average water bill is $125 -ASK.com • $100 for a house -Wiki.Answers.com • $80 in Des Moines, water and sewer -Schuling.Answers.com

7. REASONS FOR PRICE INCREASES • Upgrades and repairs to infrastructure • Costs of reservoirs and treatment plants • Federal mandates • Increased security • Rising costs • Return on equity and riders

8. Water Affordability Issues • Unaffordability can pose a health and safety issues • Higher prices affects disposable income

9. HIERARCHY OF INCOME “Risk Trade-offs in Public health when Water Prices Rise….” D. Crawford Brown, R. Raucher, S. Rubin and M. Lawson June 30, 2009

10. WATER AFFORDABILITY SOLUTIONS • Subsidies to low income (utility assistance) • Pair conservation training with solutions • Limit causes of arrearages • Appropriate fixed customer charge

11. HUMAN RIGHT TO WATER IN CA Water Rates: Water Affordability Pacific Institute in partnership with the Community Water Center.

12. Questions