For example, Denton, Denver, and Marana have inclining block tiered rates in which the cost of water per unit doubles or triples at certain use thresholds. The utilities included in the study each apply a fixed charge, regardless of the amount of water a customer consumes, and the rate structures incentivize water conservation. Except for the Lehigh County Authority, which uses a uniform volumetric rate structure, all utilities in the study use an inclining block rate for residential customers. Revenue Trends Reflected Changes in Consumption and the Influence of Inclining Block Ratesīilled user charge revenues are directly related to water consumption, but the relationship between the two may vary with the percentage of revenue recovered from fixed charges and the price per unit of water used. The differences in customer base, climate, and rate structure would become relevant to the financial impact of COVID‐19 for each utility. Historical data were collected from years not affected by COVID‐19 (2017–2019) to compare with 2020. The study team recruited 11 water utilities that agreed to provide monthly water consumption updates and billed revenues. Raftelis teamed with researchers from Duke University to further explore these anticipated trends and study water utility consumption and revenues during the COVID‐19 pandemic. ![]() In April 2020, a Raftelis report, produced in collaboration with AWWA and the Association of Metropolitan Water Agencies (AMWA), predicted an overall negative impact of US$13.9 billion nationwide on drinking water utility revenues due to changes in consumption patterns, increased delinquencies, the temporary elimination of shutoffs for nonpayment, lower customer growth, and other indirect impacts (Raftelis 2020). ![]() An AWWA survey sent to utilities in March 2020 showed utilities were shifting operational and business practices, and 80% expected revenue and cashflow problems (AWWA 2020). As the first wave of COVID‐19 hit the United States in early 2020, utility leaders across the water industry wondered what the pandemic would mean for their worker safety, continuity of operations, and ultimately, their bottom line.
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