Assessing the viability of water utilities in North Carolina: A principal component analysis approach*

Utility viability is a significant issue for utilities in the water sector where service providers are expected to operate utilities in a way that ensures clean drinking water, adequate sanitation, consistent reliable service, and long-term sustainability, while also charging affordable rates and implementing efficient processes that conserve limited water resources. In this paper, we develop a quantitative viability index using multiple data sets for water utilities in North Carolina: socioeconomic, demographic, technical managerial financial (TMF), and climatic dimensions. To contextualize the results from the index, we also conduct a series of qualitative case studies that provide deeper insight into the challenges faced by water utilities. Our work points to several data gaps and limitations that should be addressed to better capture aspects related to utility viability.