The case for state-level drinking water affordability programs: Conceptual and empirical evidence from California

Gregory Pierce, Nicholas Chow and J.R. DeShazo

Utilities Policy, 2020, vol. 63, issue C

Abstract: Informed by the design of a program in California, we make a three-part argument for why state-level governments might consider implementing direct bill-assistance programs for drinking water service to address growing affordability concerns for low-income households. State-level operation of bill-assistance programs represents a departure from the global trend of allowing water utilities to operate bill-assistance programs at their own discretion. We first explain the motivation for enhanced public sector support to help households pay for drinking water service. In state-level contexts such as California, we find that the basic household affordability equation has worsened due to an increase in the numerator of residential retail bills and a stagnation in the denominator of household incomes. We next demonstrate why direct bill assistance to households is necessary even with the presence of other system-level financial support or retail rate structure policies. Finally, we make the case that direct bill-assistance programs are best situated at the state level, due to substantial variation in systems’ capacity and demonstrated willingness to run their own robust affordability programs for vulnerable customers.

Keywords: Low-income bill assistance; Affordability; Drinking water (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:63:y:2020:i:c:s0957178720300011

DOI: 10.1016/j.jup.2020.101006

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