NAWC Statement on Water Rates and Infrastructure Investment

WASHINGTON, D.C. - In response to an activist organization's release of their own rate comparison analysis that makes claims about water utility rates and affordability, the National Association of Water Companies (NAWC) issues a strong warning against drawing broad conclusions from unvalidated, raw rate comparisons that ignore actual water usage, essential water safety investments, local operational costs and comprehensive customer assistance programs.

"Comparing rates for the largest one percent of U.S. water systems and extrapolating them for the entire sector without context paints an incomplete and misleading picture of America's water landscape. Our concerns at NAWC mirror the same concerns and warnings about these types of analysis from academics, experts and even the U.S. Government Accountability Office (GAO). Yet, unfortunately, some groups continue to use faulty rate comparison analyses in hopes of advancing an ideological agenda," said Robert F. Powelson, NAWC President and CEO. "Modernizing aging infrastructure, removing lead lines, filtering out dangerous contaminants like PFAS and protecting public health require massive capital investments. Over the past decade, regulated, private water companies have invested more than $43.5 billion - including nearly $6.8 billion in 2025 alone - to ensure clean, safe and reliable drinking water for the communities we serve."

NAWC highlights several critical realities missing from raw rate comparison studies:

• Independent Regulatory Oversight: Regulated, private water utilities do not set their own rates. Rates and allowable returns are thoroughly examined and determined through public, transparent proceedings led by independent state public utility commissions (PUCs). These commission experts ensure that every dollar charged is necessary, fair and directly tied to delivering safe, reliable service and modernizing infrastructure.
• Rates Are Not Bills: Published rate schedules do not equal what a household actually pays. Conflating the two ignores actual household consumption, water conservation efforts and robust company-sponsored customer assistance programs that lower out-of-pocket costs for low-income families.
• Flawed Methodology and Omitted Factors: As the U.S. Government Accountability Office (GAO) has cautioned, simplistic rate comparison reports are "limited in their application." They frequently omit critical cost drivers such as state and federal taxes paid by private companies, localized water supply and treatment challenges and public subsidies or non-rate revenues available exclusively to municipal systems. A Truth from the Tap analysis also highlights how scientifically flawed previously published rate comparison reports were.
• Sector-Wide Cost Pressures: Cost pressures affect the entire water sector, not a single ownership model. Rising costs are being driven by the need to replace aging infrastructure, comply with evolving federal water quality standards, address PFAS and lead, strengthen cybersecurity and build resilience to extreme weather.

Advocating for a Permanent Federal Safety Net

NAWC and its member companies recognize that water affordability is a critical challenge for vulnerable households nationwide. NAWC was a leading advocate for the temporary Low Income Household Water Assistance Program (LIHWAP) and continues to lead advocacy efforts for a permanent federal water assistance framework.

While some groups focus on comparing rate schedules, NAWC remains focused on solutions. That is why we continue to advocate for passage of the bipartisan LIHWAP Establishment Act and the creation of a permanent federal water-assistance program for vulnerable households.

To learn more about NAWC's commitment to water quality, infrastructure investment, and customer assistance, visit NAWC Water Equity and Affordability Resources.