"Avoiding Rate Shock"

1. People undervalue water, which compounds the challenge of getting rate increases accepted.

2. A consistent, structured communications outreach program builds the credibility necessary to support the customer-utility relationship and, therefore, rate increases.

3. It’s never too late to start doing the right thing—think long term and plan beyond the current crisis.

4. Billing practices and rate structure options can affect customer reactions and acceptance of rate increases.

Recent History

In the past couple of years, our utilities have been faced with even greater needs for resources and many have had to put infrastructure on the back burner. The economy, drought, population changes, compliance, competing infrastructure needs and, certainly, security, have stressed these resources and further delayed our ability to position improvements where they ought to be on our priority list.

It Can't Be Ignored

The infrastructure problem, as it applies to water, will not go away. In fact, the more it is ignored, the more it will be a pronounced threat for utility customer (and voter) confidence.  The solution to rising to this challenge will involve several methods of funding, many of which have been presented, and are being presented, at various AWWA conferences, workshops and seminars.

Rubber Meets The Road

However, I think we can all agree that the cornerstone of funding will be rate revenues. There will be no significant money available from the federal government.  We must focus on localities. This is where the rubber meets the road.

Spread The Word

Ok, so now what? It's time to communicate. We have many layers of decision makers at the local level that must be on board for successful amplification of this issue. We have mayors, council members, city managers, utility managers, special interest groups, rate payers and other stakeholders who must be involved in the process.

Develop A Plan

It became obvious, after these great studies, and collective consensus, we needed a communication plan to equip these players with the facts needed to advance progress in this area. AWWA and AWWA’s Water Utility Council sponsored a project to collect the experiences of several communities and to see how we could most effectively influence the right people about sustainable local financing.

A report entitled, "Avoiding Rate Shock," is one of the most important reference products available today.  It's available FREE to utility members of AWWA; or to non-members through the AWWA bookstore.

Remember, communication is the key!