In Partnership with Utilities
The authorizing language for LIHWAP required that program funds be paid directly to owners or operators of public water systems or treatment works on behalf of households enrolled in the program. Thus, forming partnerships with water and wastewater utilities was essential for LIHWAP’s success. However, this was no small feat given that there are over 50,000 water and wastewater utilities serving households across the U.S. The number of drinking water utilities in a state ranges from 92 in Rhode Island to 4,651 in Texas. The median number of drinking water utilities in a state is 775.[33]
Forming partnerships with water utilities was also challenging given the variance among them as the number of households served by utilities range from four households to three million, and administrative capacity varies greatly with each utility. Grant recipients conducted outreach to inform utilities of LIHWAP and to enter into vendor agreements with them. Some utilities quickly signed on to participate in LIHWAP while others were hesitant to sign agreements, usually due to the temporary nature of the program or their own lack of capacity (most U.S. water systems are small systems with small administrative staffs; the EPA estimates that 81% of public water utilities in the U.S. serve populations of 3,300 or less).
In a national survey of utility companies across the country conducted by OCS, a majority of respondents of the LIHWAP Utility Affordability Survey had less than five administrative staff, and 54.5% had less than three administrative staff.[34] These staff oversee all system operations to ensure the production of violation-free drinking water as they face increasing costs, aging infrastructure, and rising regulations. In aggregate, this leaves many small systems with limited capacity. To address these concerns and alleviate administrative burden, OCS provided guidance in September 2022 on how water utilities can participate without a formal agreement. OCS also developed many outreach resources (including at outreach toolkit comprising social media graphics, an FAQ one-pager, and LIHWAP information cards) for grant recipients to couple with their ongoing effort to increase water utility participation. In FY 2022, LIHWAP grant recipients secured nearly 13,000 agreements with utilities, including rural and tribal utilities.
Grant recipients and OCS partnered with other organizations to conduct outreach to utilities and encourage participation in LIHWAP. Several national and regional water associations, advocacy groups, and government partners provided valuable support. In Ohio, the state EPA, a trusted source of information for utilities, sent out the state’s implementation plan to inform and gather feedback from all utilities in the state. This helped foster communication with over 4,800 Ohio utilities and built relationships and trust from the beginning.[35]
Through LIHWAP, grant recipients and local agencies formed new and lasting partnerships with utilities. Outreach efforts were bolstered by utilities that worked with LIHWAP administrators to send bill inserts to customers and host local application events. Utilities also leveraged their existing relationships with customers to increase participation in LIHWAP by identifying those in need of bill assistance and referring them to local agencies, or by informing local agencies of households in need.
California has almost 3,000 water and wastewater utilities. From the beginning of their LIHWAP implementation, the California Department of Community Services and Development (CSD) prioritized outreach and enrollment of utilities. CSD contracted with a direct payment coordinator to engage and enroll utilities in the LIHWAP payment management system that allowed them to receive payments on behalf of households.
Local agencies also worked to build relationships with utilities. One agency takes application appointments at a utility twice a month. This proved to be a successful approach and the local agency spent all their benefit dollars in record time. CSD continues to work with utilities regularly and has conducted multiple regional outreach events with local agencies and utilities.
The Arizona Department of Economic Security (AZ DES) stood up a bulk payment program with the Tucson Water Department to ease the administrative burden for the utility and households in need of assistance. AZ DES created an online form for Tucson Water Department staff to gather information determining LIHWAP eligibility for customers. Tucson Water Department call center staff used this form to conduct intake for customers.
AZ DES created an online form for staff to gather information used to determine LIHWAP eligibility for customers. The information gathered was then reviewed by AZ DES staff in order approve and issue benefits on behalf of eligible households.
By supporting households in need, LIHWAP was also able to provide relief to utilities struggling to fund operations. In FY22, LIHWAP benefits paid directly to utilities on behalf of their customers totaled:
“We certainly have seen a decrease in our overall delinquencies. Putting money in our pocket allows us to continue to operate the utilities. It allows us to meet ongoing maintenance needs and repairs and upgrades … [LIHWAP] has definitely benefited us.”
Carol Dawes, City Clerk and Treasurer Barre City, Vermont
“It’s a very poor area and its always a struggle because of the income base of the people we are serving. We barely do keep our heads above water. Sometimes we can’t make our minimum reserve payments. It’s a struggle for us to make debt service payments we do have.”
Mark Lewis, General Manager, Letcher County Sewage and Water District