Water Bill Delinquency, Service Disconnections, and Water Affordability: Evidence from Southern California

• In Event: Water Policy Under Pressure: Interdisciplinary Insights for Resilient Governance

Abstract

While there is increasing attention to water affordability and service disconnections—particularly following the adoption of SB 998 in California—there remains limited empirical evidence on the characteristics of households that face water bill delinquency or service interruption. This study addresses that gap by leveraging a unique household-level panel dataset from three Southern California water agencies, covering the years 2011 to 2019. The data include detailed monthly billing and payment records, water use by tier, sewer charges, payment method (e.g., online, in-person), requests for payment extensions, and complete disconnection histories. These records are merged with census tract-level socioeconomic indicators (e.g., income, poverty, unemployment, housing characteristics) and district-specific rebate participation data.

The dataset includes millions of observations on single-family residential accounts, enabling a fine-grained analysis of trends in bill delinquency and service disconnections over time and across income and usage profiles. We construct monthly indicators for four escalating delinquency notices and link them to household water budgets, participation in conservation programs, and seasonal consumption patterns. We also integrate spatial data on disadvantaged communities as defined by CalEPA to explore equity dimensions of water access.

Our analysis shows that about 17% of accounts received at least one delinquency notice per year, a figure that remained relatively stable over time and was minimally affected by policy changes during the study period. Households with higher water use, lower participation in automated payment methods, and residence in lower-income or disadvantaged census tracts were more likely to enter delinquency. By centering on observed household behavior and longitudinal administrative data rather than indirect affordability metrics, this study provides an empirical foundation for evaluating water affordability policies. Our data-driven approach offers valuable insights for utilities and policymakers seeking to reduce disconnection risks while maintaining fiscal sustainability.

Author

• Kurt Schwabe, University of California, Riverside
  Presenting Author