Water Access & Affordability
Why It Matters
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Water is a basic human right, and we support the United Nations’ declaration of access to clean water and sanitation
as a human right, regardless of economic status. As a national water utility, we know that our water supply must be safe,
efficient, reliable, accessible and affordable. We consistently achieve affordable water costs that are significantly below
the EPA’s suggested guidance of 2.5% of household income. On average, our customers pay less than a penny per gallon
for the water they use.
Our Approach
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Our approach to water access and affordability consists of two key strategies. The first is to provide water supply that is
safe, reliable and meets the needs of our customers. The second is to provide affordable water services to customers
while protecting our customers’ right to clean water, regardless of economic status or geographic location. We also focus
on addressing water affordability by maximizing both supply-side and demand-side efficiency. Please see our Water
Infrastructure and Water Use & Efficiency sections for more.
Our Performance
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Geographic variability can cause significant differences
in the cost of water services. For example, terrain
challenges and low population density, combined with
lower median incomes, can increase water costs as
a proportion of household income. Recognizing these
challenges, we work to balance infrastructure investment
needs with water affordability to limit rate increases
to 3–4% annually. We can also reach this balance by
promoting O&M (Operations & Maintenance) efficiency,
allowing us to increase our infrastructure investment by
$8 for every O&M dollar we save, with no impact on the
cost of water services.
The EPA recommends that water bills stay in the
range of 2% and 2.5% of median household income
for wastewater and water service bills respectively.
American Water’s average monthly residential water
and wastewater bills are approximately 60% below the
EPA’s benchmark for water affordability, and we continue
to monitor the number of customers enrolled in our
assistance programs to make sure we are effectively
responding to customer needs.