UTILITY BILL AFFORDABILITY: Percent of median household income spent on utility bill
Current Value
2.43%
Definition
Data comes from the Census American Community Survey (ACS) along with the Water and BES rate ordinances. The combined utility bill is based on 50 gallons per capita per day multiplied by the average people per household (ACS DP04 1-year estimates), 1 ESU, and 2,400 square feet of stormwater billable area. Income used is from median income ACS S1901 1-year estimates.
Why Is This Important?
Utility rates fund the City’s water, sewer, and stormwater services. Affordability of those rates is a key consideration in determining future rate increases and balancing infrastructure needs and priorities.
This measure identifies the impact of the utility bill (water, sewer, stormwater) on the median, or middle, household in the City. The median household income is the mid-point of income in the City of Portland. This is considered by the Environmental Protection Agency as a measure of the community’s ability to pay for water, sewer, and stormwater services.
What Do The Numbers Show?
This shows that the median, or middle, household in our community has paid a similar amount of their income on utilities over the past several years. The percentage has stayed roughly constant, varying between 2.2 to 2.5 percent over the past several years. This shows that the utility bill has increased at the same pace as incomes in our community.
There is no standard benchmark against which this measure can be compared. The EPA has used 4.5 percent as the threshold to determine high burden and the City is below that.
How Did We Arrive at These Numbers?
The cost of an annual combined utility bill (water, sewer, stormwater) expressed as a percent of the 1-year median household income from Census American Community Survey.
Median income is a good metric to understand the general community’s ability to pay for these services. However, this is not an accurate metric to determine utility bills on the poorest within our community. Generally, the City uses the 20th percentile of incomes, or the income for a household that makes less than 80 percent of the community, to measure impacts on low-income customers.
Where Can I Find More Information?
Our financial assistance program provides bill discounts and other forms of assistance to income-qualified single-family residential customers. Learn how to apply for financial assistance with your sewer, stormwater, water bill.