Modernizing water utilities through innovative partnerships

Water utilities are under more pressure than ever with aging infrastructure, rising climate risks and evolving regulatory complexity all testing traditional operating models. At the same time, stakeholders are demanding greater transparency, improved service and stronger environmental stewardship.

Financial constraints further complicate the landscape. While the Environmental Protection Agency (EPA) estimates more than $1 trillion is needed for water infrastructure improvements over the next 20 years, utilities are often forced to fund these upgrades by raising rates, placing them at a critical inflection point. To move forward, utilities must find innovative ways to meet customer needs while maintaining affordability and regulatory compliance.

One promising approach is the development of customer-centric partnerships that support residents and promote utility initiatives, like conservation, without directly increasing rates.

The new role of the utility: From commodity to service brand

The role of water utilities is evolving. No longer seen solely as providers of infrastructure, they are increasingly viewed as service brands that deliver value through customer experience and environmental responsibility. Customer satisfaction is now a core metric of success, alongside water quality and service reliability.

Regulators and municipalities recognize that public trust is essential for program adoption, conservation efforts and long-term investment. By fostering high-trust environments, utilities can reduce skepticism and accelerate the adoption of new initiatives that benefit both customers and the environment.

Navigating constraints: Innovation within a regulated environment

While innovation is essential to meet evolving customer expectations, utilities must pursue it within the boundaries of complex regulatory frameworks. Strategic partnerships with experienced providers offer a path forward. These partners can help utilities introduce customer-facing offers such as water conservation initiatives and home protection programs that align with public service goals.

These programs not only provide meaningful support to customers, they also enable utilities to generate funding that can be reinvested into critical initiatives, such as water conservation and affordability. To ensure success, utilities must execute these partnerships with care: maintaining full regulatory compliance, thoroughly vetting partners to safeguard public trust, and delivering transparent, high-quality service at every touchpoint.

Protecting customers in times of need

One of the most pressing challenges for homeowners, and utilities, is household water loss. An estimated 900 billion gallons of water are lost each year due to leaks, contributing to an estimated $6.4 billion in costs. These losses stress water systems and can lead to rate hikes and regulatory penalties.

Customer-focused programs delivered through trusted partnerships can help address these issues before they escalate. By creating access to affordable home repair programs, utilities can support their customers through speed to action in addressing these often-costly leaks. These services can be especially helpful in economically stressed communities, where unexpected repair costs can be financially devasting. For example, our home warranty protection plans offer a seamless solution for utilities seeking to deliver added value to their customers through proactive programs and peace of mind.

At Oncourse Home Solutions, we offer flexible home protection services, in partnership with utilities and municipalities, to over 1.8 million homeowners across the country. When utilities reinvest proceeds from these programs into infrastructure upgrades and conservation efforts, they create a positive feedback loop that supports long-term resilience. For utilities looking to offer similar program options to their customers, consider partners that do the same—offering reliable coverage that brings peace of mind and strengthens customer trust in your brand.

The path forward: Trust, resilience and partnership

For today’s water utilities, meeting the challenges of the moment requires more than infrastructure investment; it requires strategic partnerships and customer-focused services that elevate the overall experience and build long-term trust.

The utilities that will lead the sector are those that embrace their dual role as both stewards of critical infrastructure and customer-centric service brands. By delivering solutions that address household needs and support environmental goals, utilities can build lasting trust and resilience. Strategic partnerships with providers—who understand the regulatory landscape and can deliver compliant, customer-focused programs—are central to this transformation.

By prioritizing trust, innovation and collaboration, utilities can strengthen their communities, improve service delivery and secure a sustainable future for the sector.