While many utilities have relied on growth and use-based revenue models in the past, that may not be possible going forward. The survey found that growth has slowed for much of the water industry, with the majority of respondents expecting growth of less than 2 percent per year. Expected system growth varied by utility type and area of the country. For example, more utilities in the Northeast expect no change in system size, while some areas have experienced significant population loss.
In an interview at ACE12, Wallis-Lage said water utilities need to broaden their thinking as they search for creative solutions for funding. Those may include tapping in to public private partnerships, other private funding sources, and increasing rates to pay for infrastructure improvements.
"I think the public is more than willing to pay for those increases when they understand why they are needed," she said. "We haven't necessarily sent that message out there with clarity and purpose to help the end users, whether that's businesses or private households, understand the part they need to play and why they need to be part of the solution as we identify funding."
The Strategic Directions in the U.S. Water Utility Industry Report is available at www.bv.com/survey.
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