Water Rates in Delaware and Surrounding States (Draft 2017)

Abstract

The University of Delaware Water Resources Center (DWRC) conducted a survey of water rates for public and investor-owned water utilities within Delaware and surrounding states of Pennsylvania, New Jersey, and Maryland. This 2017 survey is an update of previous reports prepared in 2000, 2004, 2008, 2011, 2012, 2013, and 2015.

Note that the costs and rates charged for water services differ in many respects between public and investor-owned purveyors. For example, public purveyors have sources of capital and revenue that are assumed by the tax payers but are not reflected in the water rates. For such public purveyors, finances can be intermingled with other municipal departments, thus revenues and costs are shared with other city functions. Investor-owned purveyors, unlike public purveyors, can charge rates to cover operating costs and earn profit. Additionally, expenses paid by investor-owned purveyors, primarily taxes, are not paid by the public purveyor. It is important to consider this information related to water service and rates charged for water service (which often varies by state) when comparing public- and investor-owned purveyors. Additional information on this topic can be found by reading the EPA “Four Pillars Approach – Rates that Reflect the Full Cost of Services” at http://www.epa.gov/waterinfrastructure/.

The DWRC contacted water utilities by e-mail, telephone, or website and collected water rate and tariff data from over 50 water purveyors in the four states. We used these assumptions to compute residential water rates: (a) quarterly residential water use equal to 15,000 gallons per customer (5,000 gallons per month and (b) the average residential water meter is 5/8 inch or 3/4-inch diameter.