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Californians Owe $1 Billion in Water Bills, Facing Massive Shutoffs. Is Relief on the Way?

In a time of record-breaking unemployment as a result of the COVID-19 pandemic, Californians owe an estimated $1 billion in unpaid water utility bills. With reduced revenue, hundreds of water utilities are at high risk of financial emergency. The State Water Board estimates at least 1.6 million households have an average of roughly $500 in water debt — a crisis that could lead to a wave of families facing water shutoffs, liens on their homes or other collection methods.

 

Water Bill Debt Soars During Pandemic, Prompting Fears of Future Shutoffs

Tens of thousands of Bay Area residents financially impacted during the COVID-19 crisis now face tens of millions of dollars in unpaid water bills, prompting both long-term financial and public health concerns.

That’s the conclusion of a new a report released Thursday by the non-profit public policy organization SPUR, and that looming potential crisis has experts concerned about vulnerable customers.

Here’s What the Water Sector Wants from Congress and President-Elect Biden

In a letter to President-elect Joe Biden last week, the American Water Works Association urged the incoming administration to prioritize COVID-19 relief for water utilities and investment for the overall water infrastructure sector.

The letter, authored by association president Melissa Elliott, cites AWWA research that revenue shortfalls at U.S. drinking water utilities may reduce economic activity by $32.7 billion and cost 75,000 to 90,000 private-sector jobs. Drinking water utilities are expected to see revenues from customer payments drop by nearly $14 billion, according to AWWA estimates. This is the result of the elimination of water shutoffs for non-payment, increased late payments due to high unemployment, reductions in non-residential water demands, and the addition of fewer new customers due to economic stagnation.