Overview
- Researchers used Santa Cruz as a test case and found that drier, hotter futures could nearly double monthly bills for the poorest households in some scenarios, rising from about $60 to $111 in today’s dollars.
- The study links hotter, drier conditions to greater demand and smaller local supplies, which would push utilities to build costly fixes such as desalination, potable reuse and water transfers.
- Under current practice utilities typically finance new infrastructure by raising rates, creating a trade‑off where early investment improves reliability but sharply increases bills while delay keeps rates lower but reduces service reliability.
- Low‑income households are the most vulnerable because they spend a larger share of income on utilities despite using less water, and the model shows some households could end up spending up to a third of income on water.
- Authors urge federal and state grants, low‑interest infrastructure financing and a permanent low‑income water assistance program, and coverage so far shows no major federal commitments to meet those calls.