Abstract
Key TakeawaysThe prevalence of low incomes in the United States is the primary driver for unaffordable water services.Minor rate increases or higher volumes of water usage can have a substantial impact on the pervasiveness of unaffordability.With the cost of water likely to continue increasing, utilities can play a role in protecting customers at all income levels through their rate structures.Affordability elasticity—the relationship of water bills to income distribution—is an important factor to consider in rate design.
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