Congressional Correspondence

June 6 2020 - APGA Calls for Congress to Provide Municipal Utility Financial Aid for Lost Revenue Due to COVID-19 Pandemic 

09-11-2020 06:30 PM

On June 10, APGA, along with the Association of Metropolitan Water Agencies and the National Association of Clean Water Agencies, sent a letter to Congress urging federal financial aid to municipal utilities to help offset their revenue losses due to the decreased economic activity across the country during the ongoing Coronavirus pandemic.  The letter points out that public utilities are ineligible for many aid programs passed in response to the crisis due to their size, status as municipal utility, or other eligibility factors. This includes not only direct aid but many tax incentives and employer and employee assistance.

Municipal utilities have put consumer interests at the forefront of their response to community needs during the coronavirus crisis by waiving late payment fees and suspending service shut-offs.  Yet like other companies and utilities during this crisis, municipal utilities are facing declining revenues due to the decreased economic activity across the country and the inability of customers to meet their obligations. Municipal gas utilities are roughly estimating a loss of $140 million since March, and are projecting additional revenue losses in the coming months. The drinking water and clean water sectors together estimate that they will lose more than $30 billion in annualized revenues as a result of water shutoff moratoriums, increased late payments, reductions in non-residential water demands, and fewer new customers related to the COVID-19 pandemic.

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