Seattle Public Utilities (SPU) is leading the charge for equitable practices in the U.S. water utility space. At a meeting held in March 2023, members of the Canadian Municipal Water Consortium’s Rates and Affordability Strategic Sharing Group gained valuable insights from SPU representatives Steve Hamai and Leslie Brinson.
One of the key lessons SPU has learned through its work is that an organization can create truly positive outcomes if it’s intentional in its work to address disparities. A large part of SPU’s success in implementing affordability programs can be attributed to corporate leadership. One example of SPU’s intention is its Racial Equity Toolkit (RET). The RET is required as part of the majority of SPU’s planning processes and helps initiate discussions on how to address disparities while identifying root causes of inequities.
SPU offers two programs:
- Utility Discount Program: This program provides eligible homeowners with a discount on their bill. The key to the success of the program is in the utility’s partnerships with subsidized affordable housing providers. Participants in those programs are automatically enrolled in the Utility Discount Program.
- SPU faced a significant challenge with getting assistance to low-income renters since they are not water utility customers. With renters comprising the majority of low-income residents than homeowners, SPU has had to look for innovative ways of being more inclusive; this led to the SPU Utility Credits for Renters Program. Through this program, a renter who has a Seattle City Light account is eligible to receive an SPU water credit on their electric bill.
- Emergency Financial Assistance: This program supports customers who are experiencing episodic hardships. In response to the pandemic, SPU issued a moratorium on shutoffs, late fees and late payment notices. SPU also restored water services to disconnected customers and automatically applied Emergency Financial Assistance to low-income customers who became delinquent.
- Since the pandemic resulted in an increase in the overall number of delinquent customers, SPU introduced a COVID-19 Recovery Approach. As part of this approach, the repayment period has been increased; SPU also focuses efforts on increasing shutoff prevention and reducing barriers to reconnection.
SPU staff and Strategic Sharing Group members shared common challenges their organizations are facing as they work towards advancing affordability and equity. These include:
- Engagement with customers who don’t regularly use government services, particularly when it comes to engaging those who face language barriers. SPU has had success in increasing enrollment through partnerships with community-based organizations and local housing authorities.
- Water conservation rates can be discriminatory against low-income, multigenerational households and large families. Many utilities are trying to understand how to balance multiple priorities through rate design.
- Shifting internal mindsets from being revenue-centric to being customer-centric.
- Utilities need to make data more transparent by making it publicly accessible and using it to drive decisions.
These conversations will continue into the year as CWN gears up for a session on affordability and equity at Blue Cities in October. For more information, please contact Katina Tam at [email protected]