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Guest opinion: Provo should change its water rates instead of taking an unfair payday loan

By Brigham Daniels, Andrew South and Kyle Lowe - | Apr 21, 2025

Curtis Booker, Daily Herald

The outside of City Hall in Provo is pictured Wednesday, Feb. 12, 2025.

In recent months, the Provo City Council has been considering significantly altering its city’s water rates. These changes will include rate increases for everyone in Provo, particularly residents who use the most water. Of course, changing water rates is politically fraught, but in this particular case, it is certainly the right thing to do.

Last week, a coalition of civil engineering and law professors from BYU and the University of Utah’s S.J. Quinney College of Law published a report outlining why it makes sense for Provo to implement the considered water rate changes. Changing rates now will save Provo residents significant money in the long run. Here’s why.

Currently, Provo’s rates are not sufficient to keep up with the needed maintenance and replacement of Provo’s old water infrastructure. A great deal of that infrastructure is more than 50 years old. Some of the pipes underlying Provo predate World War I.

Failing to keep up with this necessary infrastructure is akin to taking a payday loan. Rather than an exorbitant “payday” interest rate, however, Provo is currently spending a lot of money dealing with problems retroactively after infrastructure fails, not to mention having to pay for the cleanup of problems like flooded cul-de-sacs. This can also cause painful unplanned disruptions for residents. In the long term, this tactic will cost ratepayers much more.

Past Provo City Councils have not raised water rates to sufficiently pay for increasing infrastructure maintenance and replacement needs. Additional regulatory changes, and rapid, persistent growth, have also made water infrastructure more expensive. So far, these rising costs haven’t been adequately paid for by Provo rate payers, as other parts of the city budget have subsidized such repairs. But the longer we wait to fund repairs, the bigger the bill gets.

While it will not be easy for some to accept higher water rates, the cheapest and most responsible way for Provo to address this problem is to get out in front of it, and set rates that appropriately align with the actual costs. The proposed rate changes on the Provo City Council’s Tuesday docket is a fiscally responsible path forward.

Not only will the new rates be smart for Provoans’ wallets, but they also fairly consider the strain that excessive water users put on the system. Water users who use the most water will be charged more than average users. This is a national best practice, and especially in arid areas (like Utah) where water management is critical. Rate increases will be steepest for that last little bit of water our large users consume. This is fair. The reality is that those who use the most water put a lot more strain on the pipes and other infrastructure. Rather than having those who use less subsidize those who don’t, it makes sense to have everyone pay their fair part.

The argument “that a gallon of water should cost the same amount no matter how much is used” is like the argument that a mile driven by a family minivan should cost the same as a mile driven by an 18-wheel semi-truck. It just isn’t the case.

Expensive breakdowns in the system would be less frequent if those who use the most cut back. This is a central reason the state just passed legislation to encourage more moderation in water use. The price signal of additional water costing a bit more makes sense. It doesn’t ignore the cost of infrastructure provision or wear and tear, and gives those using the most water some motivation (and power) to reduce their consumption, or pay the premium such uses cost Provo’s system. Arguments to the contrary are arguments that the biggest water users deserve a handout from the rest of the Provoans.

As the Provo City Council takes up this issue in the upcoming week, credit should be given to those members who are willing to vote to make Provo’s water rates more fiscally responsible and fair, even if it’s politically difficult. When the consequences of the right decision come with challenges, it doesn’t make the decision to act any less right.

Brigham Daniels is a Provoan and professor at the S.J. Quinney College of Law. Andrew South is a Provoan and an assistant professor in Brigham Young University’s Civil and Construction Engineering Department. Kyle Lowe is a second-year law student at the S.J. Quinney College of Law.

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