WIFIA Solutions for Limiting Impacts on Ratepayers

I need to limit impacts on rate payers.

Raising water rates is typically unavoidable when paying for water infrastructure projects or capital improvement programs. One option for mitigating these rate increases is securing grants or affordable, low-cost financing. This funding can help moderate water rate increases and limit impacts on rate payers.

How Can WIFIA Funding Help?

The WIFIA program offers several flexibilities to secure debt financing for projects now while minimizing the burden on current ratepayers, including customized repayment schedules and the ability to wrap WIFIA loans around existing debt. These options help accelerate water infrastructure investments, while limiting rate payer impacts.

• Sculpted Repayment Schedule: Borrowers can customize their repayments to match their anticipated revenues and expenses for the life of the loan. This flexibility provides borrowers with time they may need to phase-in rate increases to generate revenue to repay the loan. The WIFIA program offers repayment terms of up to 35 years after project completion. Borrowers may also defer repayments for up to 5 years after project completion and make interest-only payments for additional years.
• Wrap WIFIA Loan Around Other Debt: The ability to slowly increase loan payments allows borrowers to wrap principal repayments around other debt. For example, a project co-funded with a 20-year State Revolving Fund (SRF) loan and a 35-year WIFIA loan could take advantage of the WIFIA program’s flexibility and make only minimal payments until year 21, after the SRF loan has been fully repaid.

Hear What Our Borrowers Are Saying:

“The WIFIA Program is financing long term water supply reliability and helping the District meet its goal of maintaining water affordability for its customers. The WIFIA Underwriting Team and Portfolio Manager have been extremely helpful and make the process of obtaining a WIFIA loan and disbursements straightforward and customizable based on our specific project.” – Kari Duncan, General Manager (2023), Rockwood Water People’s Utility District, Oregon

“WIFIA has helped us manage costs, saving rate payers over $66 million in long-term interest expenses. Working with WIFIA has been easy - the team is incredibly supportive and accessible.” – Seattle Public Utilities (2023), Washington