Oakland, California, USA, Nov. 12, 2026 (GLOBE NEWSWIRE) — The Pacific Institute today releases Paying for Climate Disasters on the Water Bill, a report that introduces a new framework, the Water Affordability-Climate Disaster Feedback Loop, to explain how climate disasters can trigger a self-reinforcing cycle. Disasters can damage water systems, utilities raise rates to cover repairs, households fall behind or lose service, and the lost revenue leaves utilities less able to maintain and staff their systems, making them more vulnerable to the next disaster.
Water and wastewater services are already unaffordable for an estimated 12 to 19 million US households. For families struggling to pay their water bills, that can mean difficult choices between water and other necessities like food, housing, and healthcare. Climate disasters such as floods, droughts, wildfires, and extreme temperatures place added financial pressure on water systems, driving the cost of these fundamental services even higher.
“When climate disasters damage water systems, the costs of recovery do not disappear. They show up on household water bills, and the communities already burdened by the rising costs of living feel them most,” said Morgan Shimabuku, Program Manager at the Pacific Institute and lead author of the report.
Disaster costs are already reaching households, from a roughly 12% rate increase in Jackson, Mississippi, where flooding compounded decades of deferred maintenance, to a $3,000 per-household charge from a water company whose reservoirs were destroyed in the Eaton Fire in Los Angeles County. The report draws on examples from across the country, including drought in Corpus Christi, Texas; wildfire and flooding in Las Vegas, New Mexico; Winter Storm Uri in San Antonio; and Hurricane Katrina in New Orleans.
The most severe impacts fall on frontline communities that are already overburdened and underresourced, and on low-income households that have less ability to reduce their water use when rates rise.
The feedback loop is not inevitable, and strategies from disaster preparedness to equitable rate design and shutoff protections can disrupt it, especially when affordability is built into climate adaptation from the start. The report notes that while existing customer assistance programs often offer substantial median bill reductions of around 40%, they remain severely undersubscribed, with typical participation rates of only 10% to 25% of eligible households.
Among the approaches the report highlights are Philadelphia’s Tiered Assistance Program, which enrolls prequalified households automatically and structures utility bills as a percentage of household income, and a 2023 Washington State law that requires water and energy utilities to delay shutoffs during extreme heat events.
“Affordability can’t be an afterthought in climate adaptation. It needs to be considered before disaster strikes and before rates are set, not after households have already fallen behind on their bills,” said co-author Shannon McNeeley, Pacific Institute Associate Director and Water and Climate Equity Program lead.
Currently, research tracing disaster costs to household water bills has largely focused on drought, leaving the effects of floods, wildfires, and extreme temperatures less understood. Until that evidence base is built, communities will be left to navigate a growing affordability challenge with inadequate tools. The report’s framework offers a starting point for researchers, utilities, policymakers, and advocates working to ensure that everyone, regardless of income or zip code, has access to safe, reliable, and affordable water and sanitation.
—-X—-
Founded in 1987, the Pacific Institute is a global water think tank that combines science-based thought leadership with active outreach to influence local, national, and international efforts in developing sustainable water policies. For more information, visit pacinst.org.
Attachment
Pacific Institute media@pacinst.org
Media gallery
