Strengthening Utilities through Consolidation: The Financial Impact

Today, the US Water Alliance and the UNC Environmental Finance Center are proud to release a new report, Strengthening Utilities through Consolidation: The Financial Impact. This report synthesizes the financial impacts of consolidating water utility service by looking at the real-world, diverse experiences of eight communities from across the country.

There are tens of thousands of water utilities and authorities in the United States. Collaboration will be essential to securing our nation’s water future. Consolidating water utilities is one of many options communities may consider to pool resources, streamline decision-making, and increase efficiency. While complex, consolidation may be an appropriate consideration when the community value proposition outweighs costs. Leaders need access to more information about the financial effects of consolidating water utility service to assess their options.

“The questions we hear most often from utilities are: what will consolidating do for us economically? Will this be a good deal for us?” said Jeff Hughes, Director of UNC’s Environmental Finance Center. “Through this project, we were able to dive into the many nuanced facets of this question including impacts on customer rates, utility finances, and overall community economic health.”

“Advancing common-ground solutions in the water sector must begin with the facts,” said Radhika Fox, CEO of the US Water Alliance. “We hope that the diverse models of utility consolidation, and their financial impacts, in this report will provide water stakeholders around the country with the information they need to consider the pros and cons of this important management approach.”

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