Maine Water Utilities Association held their October Bi-Monthly Meeting in Belfast on October 10th. 

Frank Short, the superintendent of Belfast Water District, welcomed the attendees to Belfast and discussed the district’s operations and challenges and mentioned that the district serves approximately 5,000 people with two wells, one capable of pumping 1,200 gallons a minute and the other 600 gallons a minute. 

BUSINESS MEETING:

Strategic Planning, Training, and Financial Updates 

Mike Cummons, MWUA President, led a discussion about the organization’s strategic planning, expressing gratitude to members who participated in listening sessions. He highlighted the development of a strategic plan focused on training, communication and visibility, and finances. The plan aims to improve these areas and build a reserve for unforeseen expenses. Mike also announced the revival of the Public Awareness Committee and encouraged more frequent strategic planning sessions. 

Budget, Training, and Legislative Engagement 

Nicki Pellenz, MWUA Executive Director, discussed the budget and the need for a more nuanced approach to financial reporting. She emphasized the importance of building out our training offerings and the potential for reaching out to consultants to provide training. Nicki also mentioned the need for a change in the TaP committee, suggesting the formation of subgroups for different tasks. 

Roger Crouse, Legislative Committee Chair, highlighted the importance of building relationships with local legislators.

Amy LaChance, Director Maine Drinking Water Program, provided an update on the drinking water program and the State Revolving Fund, mentioning the recent attention on PFAS and the need for transparency in funding. Amy also discussed the impact of the new regulations of per- and polyfluoroalkyl substances (PFAS) and the changes in the Federal regulations, including the requirement for two samples 5 to 7 months apart. She encouraged systems to submit their lead line inventory, even if it is all unknown, and expressed concern about the cost of regular testing for non-PFAS systems. 

New Director Introduction and Utility Meetings 

Jody McColman, the new Director of Telephone and Water Utility Industries at the Maine Public Utilities Commission, introduced himself and expressed his openness to addressing any concerns or questions from utilities; including his willingness to visit utilities to discuss their systems. Christina Trufant, the Public Engagement Liaison, shared information about ongoing meetings between water utilities and the fire marshal’s office to discuss overlapping issues and plan accordingly. 

TECHNICAL PRESENTATION & PANEL DISCUSSION:

Addressing Water Utility Rate Disparities and Solutions 

Bill Harwood, Maine’s Public Advocate, discussed that increasing water rates disproportionately impact low-income households. He proposed exploring creative solutions through the Water Ratepayer Assistance Project and introduced Dave Fox, an expert on financial rates and affordability. Dave provided an update on his work with Bill’s team. Dave emphasized that water affordability issues in Maine stem from poverty rather than high bills. He noted that increasing rates funds necessary infrastructure projects and water utilities must maintain trust by reinvesting in their infrastructure. 

Water Infrastructure Maintenance and Affordability Challenges 

Dave further discussed the financial burden of water infrastructure maintenance and the need for reinvestment. He acknowledged challenges in providing relief to low-income customers and explained different rate structures, introducing the concept of customer assistance programs, funded through rates, which provide discounts to low-income customers. Dave emphasized the importance of data collection and analysis for implementing customer assistance programs and discussed the challenges of determining the right amount of relief for customers. Lastly, he reviewed the challenges of aligning rate structures with affordability and cost of service, and the shift in rate design methodologies to focus on community and utility priorities. 

Water Assistance Program and Affordability Strategies 

The panel discussed the development of a statewide needs model, which would require significant investment and the importance of understanding the needs under different frameworks and parameters. A discussion about utilities being more proactive about asset management and financial planning.  They also discussed communication and outreach tactics to educate rate payers about the water industry and acknowledged the lack of understanding about the water industry among the public and stressed the importance of educating them. 

Roger Crouse discussed the Water Assistance Program launched in September 2020, which provided subsidies to utilities based on individuals’ needs and highlighted that not all utilities participated, but many did. Frank Short also shared his utility’s experience with the program, noting that they had only three customers apply for it. Herb Kronholm expressed concern about the program’s discontinuation and its impact on their utility’s finances and discussed his utility’s approach to affordability, including monthly billing, adjusting bills based on average consumption, and assisting customers with payment arrangements. He mentioned that they are transitioning to a new software to better track and manage these arrangements. 

Balancing Interests and Affordability in Utilities 

Stephani Morancie discussed the role of the Public Utilities Commission (PUC) in balancing the interests of utilities and ratepayers. She expressed support for local control and the idea of discussing affordability more often in the industry. 

The meeting also touched on the topic of affordability and the potential for a statewide or federally funded system. The panelists discussed the trend of utilities moving towards more aggressive tiering of fixed charges and implementing block rate structures. They also discussed the potential for restructuring charges, looking at alternative fees for fire protection, and considering standalone irrigation rates. The conversation also highlighted the challenges of rate design and the potential for customer relations problems. 

Discussing Low-Income Customer Assistance Programs 

Bill Harwood proposed a program to assist low-income customers with their water bills, suggesting utilizing data from the Department of Health and Human Services to identify eligible customers. He mentioned the possibility of automatic enrollment for those enrolled in social welfare programs. 

There was a discussion highlighting helping small utilities understand disconnection processes and payment arrangements for struggling customers. 

At the conclusion of the panel discussion, Bill concurred there are challenges faced by the water utilities industry, particularly in terms of affordability and infrastructure maintenance and suggested that a statewide regulated program through the Public Utilities Commission could provide more flexibility in designing solutions. He also highlighted the importance of customer education and outreach in creating a sustainable program, with Dave noting that such programs could lead to improved collections and more people paying their bills. 

Key Takeaways

• – Water rates are increasing faster than inflation, creating affordability challenges for low-income customers
• – Maine utilities have varying approaches to affordability; some offer payment plans or adjust rates
• – There’s debate over implementing statewide customer assistance programs vs. local/utility-specific solutions
• – Administrative burden and funding sources are key concerns for any potential assistance programs

Water Affordability Overview

• – Water bills have increased 225% over 25 years vs 100% for median income
• – ~10-15% of Maine households pay >2% of income for water
• – Average annual water bill in Maine is $428, in line with nearby states
• – Smaller utilities (<10,000 population) tend to have higher affordability burdens

Current Approaches to Affordability

• – Maine had a temporary $4.7M statewide assistance program
• – Customer outreach and education are important for program 

Potential Assistance Program Considerations

• – Income verification and enrollment processes need to be streamlined
• – Funding sources debated – ratepayer funded vs. external funding
• – Administrative burden on small utilities is a major concern
• – Balancing revenue stability with affordability is challenging