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Jan/Feb 2025 FSC Newsletter
In advancing its claim that water rates charged by the American Water Company's (AWC) various state operating companies are not only generally affordable,
but have become even more affordable over time, AWC introduces a concept which it calls "Basic Water Service."
This issue explains the fallacies in that concept and why the concept should not be used to assess water affordability.
Nov/Dec 2024 FSC Newsletter
The American Water Company (AWC), in rate cases throughout the nation for its operating companies
(e.g., Pennsylvania American Water Co., Illinois American Water Co., Missouri American Water Co.) has in the past year
routinely advanced the claim that the rates for its water service are not only affordable, but that they have become more affordable over time.
In support of this claim, AWC has compared its bills to the Median Household Income for Homeowners (MHI-HO) over time.
This issue explains why the AWC argument does not support its conclusion, but rather simply indicates that in serving primarily homeowners,
as housing becomes increasingly unaffordable, the utility is serving an increasingly wealthier customer base.
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