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Convincing your customers to embrace water rate increases

Let’s face it. No one wants to pay more, especially for essential services of power, sewer, and water. That is especially true with water which is perceived to be so generic in nature, always available, and taken for granted. Still, while we all need it, we all need it to be safe. We all need it to be reliable. It is truly a need, not a want. But rarely can you find water that is safe, reliable, and free.

There are always costs in getting that water to whoever uses it. For drinking water to be safe it must be treated. Those treatment facilities, wells, and delivery pipelines all cost money. Further, they need someone to operate and maintain them, which is another cost, in the case of municipal water. Those operators must be licensed and receive continuous education to keep their license.  To meet EPA safe drinking water standards regular, rigorous testing must be conducted to assure that those standards are being met. All of these activities result in costs that the user has to pay.

Even using a private water well has similar costs. A well supply still has its pump, the pipe, the electricity to run it. The pieces and parts all age and will eventually need to be replaced, and someone must do the replacing.

So, how can customers be convinced that water price increases for water are truly necessary?

The answer is educating the users with good, solid, defensible numbers. The users must be educated on knowing their system and what is needed, from maintaining an inventory of parts to costs for operators to day to day operating expenses. That includes having a plan for replacing aging infrastructure components and paying for them as recommended by the American Water Works Association. That association also recommends setting aside funds for emergency repairs.

Explaining operation costs including repairs is essential for convincing users on any necessary rate increases. That explanation should include planning and funding new additions over a period of time that the users can handle. Being able to convincingly explain the ongoing costs of keeping the system in good repair while planning and funding new additions over a timeline that is manageable is essential for selling the users on any necessary rate increases. Communicating those costs before proposing a rate increase normally makes the whole process simpler.

Jim Gores is a licensed professional engineer in the State of Wyoming and in Montana. He has prepared over a dozen municipal water master plans including their supporting water rate studies and financing plans to assure a financially self sustaining system. He has served as the Principal Engineer for James Gores and Associates since 1988.