Rates and Affordability: A Ratings Agency Perspective

By Erin Boeke Burke

What Does “Affordable” Mean?

There are a wide range of opinions on what it means for water and sewer service to be “affordable.” To some, water is a human right, others a property right, and still others a commodity. One thing is certain: Access to potable water is not free, because the infrastructure to access it, properly and safely treat it, and deliver it to the end user is not free. The question for decision-makers such as utility managers and rate regulators, then, is: If not free, then how much should it cost? There is no clear answer, nor are there universally accepted benchmarks.