U.S. Water Utilities May Raise Rates to Repair Old Pipes

More than one-fifth of U.S. water utilities may need to increase rates at least 10 percent annually over the next decade to cover costs primarily from aging infrastructure, according to a report by Black & Veatch Corp.

Utilities struggling to maintain or replace decades-old systems are finding it harder to secure capital as slowing home sales and water-conservation measures drive down revenue, said Ralph Eberts, executive managing director for the Americas at Black & Veatch. More municipalities may turn to public-private partnerships, such as those pursued in the U.S. by Veolia Environnement SA, Europe’s largest water company.