Climate change will likely have far-reaching impacts
on water utilities and their management. Energy supply and use, system
infrastructure, water quantity and quality, and customer expectations are just a
few issues that will likely be affected by climate change. As a result, water
utility managers will need access to analytical tools and management techniques
to understand these impacts, to develop and implement appropriate responses to
ensure reliable, affordable, and sustainable levels of service, and to
communicate effectively with customers and stakeholders.
Utilities typically face many types of risks (e.g.,
security, infrastructure failure, and renewal), and they frequently need to make
key risk management decisions in the face of uncertainty. Climate change adds a
new array of significant uncertainties that are not yet well characterized, and
imposes risks that carry potentially major consequences. The potential sources
of utility risk are diverse (e.g., severe droughts, floods, water quality
challenges), the probabilities and consequences of adverse events are often
highly uncertain and may be severe, and any portion of the utility may be at
risk (e.g., from source to tap). It is critical that utilities identify and
prioritize the key threats and begin to consider response and adaptation options
that are targeted at the most significant risks.
Unfortunately, utilities must manage the risk in an
environment where the level of climate change awareness, beliefs, and
expectations may vary widely among customers and other stakeholders. As
utilities develop programs to address the resource, infrastructure, and
financing challenges presented by climate change, they must communicate with and
build support within their customer base and governing bodies. Effective and
consistent customer/stakeholder communications are built upon an awareness of
customer/stakeholder expectations, viewpoints, and levels of knowledge.