Investor Presentaiton
Funding Water Utilities Infrastructure Repair
Water Utilities in North America
>50,000 water utilities and >14,000 wastewater utilities in U.S.
and Canada (1)
Around 4,400 water utilities, or 9% of the total, serve >80% of the
estimated population served (>260M) (1)
Approximately 14% of the U.S. population served by privately owned
water systems, including investor-owned utilities (IOU) (2)
Distribution of Water Utilities in U.S. (1)
Market Tier
(by population served)
# Water
Utilities
% of Total
Utilities
Estimated
Population
Served
% of
Population
Served
>100,000
448
0.9%
146.9M
46.8%
10,001 100,000
3,960
8.2%
114.4M
36.4%
3,300 10,000
4,940
10.2%
29.1M
9.3%
<3,300
39,230
80.7%
23.4M
7.5%
•
Sources of Funding for U.S. Utilities
For U.S. utilities, 96% of funding at state/local government level (3)
Majority of utilities have service connection fees and/or capital recovery charges, with
median fees of about $7,800, up 22% since 2016 (4)
CPI for water and sewerage maintenance increased 4.6% for 12 months ended July
30, 2023, and has historically exceeded CPI for all items and other utilities including
natural gas, electricity, and postage (5)
U.S. municipal bond issuance declined to $391B in calendar 2022, after two years
above $480B, which is down 5% y/y vs. the 10-year average (2012-2022) (6)
U.S. Federal government provides incentives for water utility projects such as Drinking
Water State Revolving Funds (DWSRF) and Water Infrastructure Finance and
Innovation Act (WIFIA) administered by the Environmental Protection Agency (EPA)
Infrastructure Investment and Jobs Act ("IIJA” or “Infrastructure
Bill"), signed Nov. 15, 2021, includes $55B of new funding
dedicated to water, wastewater and stormwater infrastructure (7)
Represents highest level of federal spending in inflation-adjusted dollars since the
mid-1970s
$55B includes $15B for lead service line (LSL) replacements and $10B to help
address emerging contaminants (i.e., PFAS)
Existing state revolving funds (drinking water and clean water) are primary ways for
funding to get allocated to projects
Emphasis on directing funds towards small and disadvantaged communities either as
grants or forgivable loans
Increases domestic procurement requirements, known as “Build America, Buy
America" (BABA), from 55% to 75% over 8-years
(1) Bluefield Research Total Addressable Market for Water & Wastewater Utilities, June 2023.
(2) Bluefield Research 2019, U.S. Private Water Utilities Report.
(3) RAND Corporation 2017 Report titled "Not Everything is Broken."
(4) American Water Works Association 2021 Water and Wastewater Rate Survey.
(5) Bureau of Labor Statistics.
(6) Securities Industry and Financial Markets Association (SIFMA) as of August 28, 2023.
(7) Bluefield Research, May 2022, "The Infrastructure Investment and Jobs Act: Breaking Down the Water Funding."
MUELLER
14View entire presentation