Green Supply Chain: Coca-Cola's Water Management Four Best Practices
23.02.12
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And our water infrastructure is old. The three states of South Dakota, Alaska and Pennsylvania still use wooden water mains. High consumer demand and an aging water infrastructure suggest the need for substantial community, business and individual capital investment in water supplies, management systems and efficiency.
However, water revenues are not high enough to offset the cost of capital for infrastructure repair. Water utility revenues are being constricted due to reduced sales — drought sparks consumer conservation. In addition, American water consumers are conditioned to low prices for water from decades of receiving low monthly bills. For example, the average American household consumes about 127,400 gallons of water during a year. Homeowners in Washington, DC, pay about $350 for that amount of water. In comparison, buying that same amount of water from a vendor in Guatemala City would cost more than $1,700. The American consumer’s expectation that water should be an inexpensive resource results in significant consumer resistance to utility proposals for higher water rates. The result is a high risk scenario of potential water supply shortage plus volatile price increases as water suppliers push through rate increases that are higher in size due to the delay in gaining consumer/regulatory acceptance.
Source: Triple Pundit