Access to water and sanitation services should not hinge on background, geography, or how much money someone makes—but it often does. Studies show that between 2012 and 2019, local water bills increased 31 percent nationally, far outpacing inflation and the consumer price index. Historical declines in federal support for water infrastructure have made this trend even worse. Local officials and water utility leaders have had no choice but to raise local water and sewer rates to pay for the needed operation, capital, and maintenance costs. Without federal and state support, local water and wastewater rates have increasingly become unaffordable for millions of Americans, and utilities have operated with outdated billing systems and often struggled to enroll low-income residents into the modest assistance available.
Financial stress incurred by the COVID-19 pandemic and economic crisis has brought water affordability into sharp focus, and innovators have been seeking solutions to meet their communities' rising needs. The water and wastewater utilities in Louisville, Kentucky, provide one such case. Louisville shows how new, smarter solutions to bill relief are helping people in need while improving the utility-customer relationship by balancing care, bill assistance, and debt relief with needed revenue stability to maintain essential water systems.
This case study explores key facets of the challenge, what Louisville achieved for its residents, and how the city's approach provides a model for other utilities to consider as they move forward. Sections discuss:
- How traditional customer assistance efforts have failed to meet customer needs, struggled with enrollment, and overlooked their fundamental purpose of guarding against revenue instability.
- What a modern, user-friendly approach to bill assistance looks like and how, combined with compassionate messaging, it can shift utility-customer payment and service relationship for the better.
- Why establishing innovative bill assistance options is especially wise given current and future federal funding opportunities to provide debt relief.
- Longer-term actions the federal government should prioritize to make safe, reliable water and wastewater service affordable for all.