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The Affordability Gap In Utility Services

The Affordability Gap In Utility Services. Mark Schuling Iowa Consumer Advocate. NASUCA Santa Fe, New Mexico June 2, 2014. ELECTRIC. “By 2030, the electric utility industry will need to make a total infrastructure investment of $1.5 to $2.0 trillion.”

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The Affordability Gap In Utility Services

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  1. The Affordability Gap In Utility Services Mark Schuling Iowa Consumer Advocate NASUCA Santa Fe, New Mexico June 2, 2014

  2. ELECTRIC • “By 2030, the electric utility industry will need to make a total infrastructure investment of $1.5 to $2.0 trillion.” -The Brattle Group, Transforming America’s Power Industry

  3. GAS • Through 2030, the gas pipeline and storage utility industry projects investment needs of $133 to $210 billion in infrastructure. - INGAA Foundation report October 20, 2009

  4. WATER • “The U.S. faces unmet water and wastewater infrastructure needs of approximately $600 billion over the next 20 years.” - NARUC letter to the Honorable Tom Reed May, 24, 2013

  5. TREND TO WATER PRIVATIZATION • Five times as many deals in 2010 then in prior years • Budget shortfalls and the need for water infrastructure were the main factors -Food & Water Watch November 2010

  6. THE AVERAGE WATER BILL • The average water bill is $125 -ASK.com • $100 for a house -Wiki.Answers.com • $80 in Des Moines, water and sewer -Schuling.Answers.com

  7. REASONS FOR PRICE INCREASES • Upgrades and repairs to infrastructure • Costs of reservoirs and treatment plants • Federal mandates • Increased security • Rising costs • Return on equity and riders

  8. Water Affordability Issues • Unaffordability can pose a health and safety issues • Higher prices affects disposable income

  9. HIERARCHY OF INCOME “Risk Trade-offs in Public health when Water Prices Rise….” D. Crawford Brown, R. Raucher, S. Rubin and M. Lawson June 30, 2009

  10. WATER AFFORDABILITY SOLUTIONS • Subsidies to low income (utility assistance) • Pair conservation training with solutions • Limit causes of arrearages • Appropriate fixed customer charge

  11. HUMAN RIGHT TO WATER IN CA Water Rates: Water Affordability Pacific Institute in partnership with the Community Water Center.

  12. Questions

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