Canton, GA (PressExposure) April 07, 2010 -- Water utility companies are feeling the effects of the rotten economy. Many consumers are saving the money in their checking accounts by using significantly less water. Not only are consumers using less water but manufacturers are following the trend. Some companies have closed, restaurants serve water by request only, the real estate market is bleak and tourism is down.
Recent research by the Water Research Foundation, a Denver-based non-profit, found that home foreclosures, big business closings and halted development have reduced water demand in many areas. The effects are regional too. Cities with higher unemployment have proportionately reduced water consumption--as more people leave in attempts of finding work, less water is used.
A wide range of factors decide the water rates, things like internal infrastructure and treatment costs in addition to the revenues from water use. When water use falls, water utilities must supplement elsewhere. Consumers are feeling the brunt of this.
The weather also affects water use. Extreme rain means less people use water for car washing and gardening, droughts dictate water restrictions.
In attempts to combat the revenue decline, water utilities have raised their rates. For many people, this only means a slight increase on their monthly bill, but for the water companies, the change adds up to millions of dollars.