Affordability and Equity Considerations for Rate‐Setting

Key Takeaways Historically narrow definitions of water service as provision of a metered commodity do not encompass the extent to which all people benefit from access to safe, reliable water. A more expansive definition of water service is warranted. Water utilities are major economic actors and can—and should—play a role in making water universally accessible and affordable in their communities. The industry's existing cost‐of‐service analysis methods for rate‐setting may be tailored to better advance water affordability and equity.