Sustainable Rate Structure Analysis and Affordability Assessment
Balancing multiple priorities in rate design
Like many utilities, New York City aims to balance multiple objectives when updating the rates it charges for water and sewer services. Rising costs, aging infrastructure, climate risks, and affordability concerns challenge the long-term viability of current rate designs. At the same time, declining per capita water use and shifting customer demands complicate revenue stability. The City needs a forward-looking framework to evaluate alternative rate structures that balance financial health, equity, and policy goals.
Advancing a More Equitable and Resilient Rate Structure
New York City DEP engaged Stantec, with One Water Econ as a subconsultant, to evaluate options for a more equitable, stable, and sustainable water and wastewater rate structure. One Water Econ’s role in this project including conducting a comprehensive affordability assessment, evaluating DEP’s existing customer assistance programs and recommending enhancements, and designing a stormwater credit program to be implemented if New York City were to shift to a separate charge for stormwater (currently stormwater costs are included in the wastewater rate). The analysis provides a flexible, data-driven framework to guide future rate decisions, stakeholder engagement, and policy alignment—ensuring New York City’s water system remains financially resilient, socially equitable, and climate-ready.