Cost of Water Supply: Selected Case Studies

Abstract

EPA initiated a study of selected water utilities in which data were collected from at least one Class A water utility in each of EPA's 10 regions. To facilitate data comparisons, each utility's costs were subdivided into the functional area of acquisition, treatment, power and pumping, transmission and distribution, and support services. Costs were also categorized as being either operating or capital costs. These data indicate a general trend in the increasing demand for water, increasing labor wage rates, and in increasing costs of other operating and capital expenses associated with water supply. Labor costs account for more than 40% of total operating costs. It is estimated that the cost of water supply will increase by 59% between 1975 and 1980 due to normal demand and inflationary pressures. The add-on technology required to meet proposed provisions of the Safe Drinking Water Act will increase water supply costs by another 22%.