Structure, regulation, and pricing of water in the United States: A study of the Great Lakes region

The structure and regulation of the U.S. water industry is more complex than is often apparent and pricing practices vary substantially. While not representative of the region or nation, a survey of the largest water systems in the wider Great Lakes region is illustrative as well as revealing of salient considerations within the sector. Data from Wisconsin provide additional perspective with regard to trends in costs and prices for water. The context of rising costs and prices, and growing concerns about accountability and sustainability, suggests consideration of pricing practices as well as the role of economic regulation in the water sector.

► A detailed rate survey provides insight into structural features and ratemaking practices for larger water systems in the Great Lakes region.
►  What customers pay for water service is highly variable and structural characteristics, such as utility ownership, are relevant to the comparison.
►  Scale economies are not apparent for the water systems in the sample.
► Rising infrastructure costs and prices will place growing stress on water systems.
► Economic regulation of the U.S. water sector is limited but could be expanded to improve practices and accountability.