As rising rates of water and wastewater services become unaffordable for many low-income households, utilities grapple with the potential financial impacts of implementing discount programs. To aid in this, the Water Affordability Business Case Tool has been developed by technical experts under contract to the Natural Resources Defense Council, enabling utilities to assess the financial viability of these programs.

The tool allows utilities to model the net financial impacts of three types of discount programs using their own data and U.S. Census Bureau information. Besides helping utilities evaluate funding options, the tool could potentially provide a legal rationale for financing these programs with rate revenues. The tool also caters to community organizations, oversight agencies, and other stakeholders.

The tool and its documentation include three files that can be downloaded from the NRDC here. The tool is an Excel file, while an FAQ and quick-start guide offer guidance to use it. The tool was beta tested in 2022 with several water and wastewater utilities, according to NRDC.