Costs of sewer service for the nation’s families lagged slightly behind the inflation rate in 2023, but rates are likely to increase more rapidly in the next five years.
Those are the main conclusions of the National Association of Clean Water Agencies’ annual Cost of Clean Water Index. NACWA reports that the average annual charge for wastewater services increased by 3.2% for the calendar year, or 0.9 percentage points below the rate of inflation as measured by the Consumer Price Index.
“This marks the third straight year where national charges for wastewater collection and treatment services were outpaced by inflation,” the NACWA index summary states. In 2023, charges for the national average single-family home were $588, versus $567 for 2022.
The service charges varied substantially among U.S. EPA regions and states and are affected by demographics, geography, system ages, regulatory requirements, and issues, according to NACWA. Average annual charges ranged from $387 in EPA Region 8 (Montana, the Dakotas, Colorado, Wyoming and Utah) to $1,010 in EPA Region 1 (New England).
The report notes that customers pay for sewer services in a various ways; charges can be based on property value, amount of water used a flat rate, or some combination.
Looking ahead, the NACWA index projects says half of the utilities that responded to the survey expect to increase rates by 20% or more by 2028, and 80% of utilities had either approved or planned rate increases for 2024 and 2025.
“From 2024-2028, rates for wastewater services are expected to rise from 4% to 5% per year, with a median cumulative five-year increase of 20%,” the report says. Reasons cited include capital needs to restore aging infrastructure; increasing regulatory requirements related to consent decrees, sewer overflows and nutrient control; and increasing operation and maintenance costs for labor, construction, supplies and materials.
An important measure of sewer charge affordability is how the cost of service affects lower-income families. For 2023 the average annual sewer charge of $588 represented 1.96% of that year’s 2023 federal poverty income threshold of $30,000 for a family of four.
The cost figures were compiled from the survey responses of 164 utilities serving a combined population of 99 million.
