How to Pay for Distributed Infrastructure

Just as homeowners typically take out mortgages to secure the large amount of upfront funds needed to buy a house, most utilities borrow to raise the capital, i.e., upfront funding, required for their larger investments. 

Debt financing is attractive because it minimizes ratepayer impacts by amortizing the payback period over decades rather than placing the full burden on current consumers.  

Water utilities can use this same strategy to raise upfront cash for investments in distributed water infrastructure, using municipal bonds, SRF loans, or a mix of these and other types of borrowing.