Over the past decade, many businesses that process laundry, property managers, and small business operators in the Southeastern U.S. have been keeping a close eye on their utility bills. Electricity and natural gas price increases have drawn headlines, but there’s a quiet and consistent squeeze happening in the background that many aren’t fully prepared for: commercial water and sewer rates are rising faster—and steeper—than any other utility category.
📊 The Data: A Decade of Rising Utility Costs
We looked at ten states across the Southeast—Tennessee, Kentucky, Georgia, North Carolina, South Carolina, Alabama, Mississippi, Texas, Florida, and Louisiana—and compared the trends in commercial electricity, natural gas/propane, and water/sewer rates over the last 10 years.
Here’s what we found:
| Utility Type | Estimated 10-Year Increase | Average Annual Growth |
| 🔵 Water & Sewer | 50–100%+ | ~5–7% per year |
| 🟢 Natural Gas / Propane | ~20–30% | ~2–3% per year |
| 🟡 Electricity | ~20% | ~2% per year |
Key Takeaway: While energy costs have indeed gone up, water and sewer rates are increasing two to three times faster—and in some municipalities, commercial users have seen their bills double over the past decade.
💧 The Hidden Culprit: Water Infrastructure and Regulatory Pressures
The primary driver behind these rate hikes isn’t usage—it’s infrastructure. Across the Southeast, aging water systems are being overhauled, and municipal utilities are passing the cost of those upgrades on to commercial ratepayers. Add stormwater fees, EPA compliance mandates, and sewer capacity upgrades, and you’ve got a recipe for compound annual increases.
In many cities:
- Rate hikes are built into long-term utility planning, often escalating automatically each year.
- Commercial users are charged at a higher tier, meaning laundromats and other high-usage businesses carry a disproportionate share of the load.
- Water bills now rival or even exceed electricity bills in many facilities with efficient laundry equipment.
🔌 What About Electricity and Natural Gas?
Electricity rates across the Southeast have risen more modestly—around 20% on average over the past decade. States like Georgia and Florida have implemented gradual rate increases tied to infrastructure projects like nuclear development or grid upgrades. In deregulated markets like Texas, volatility has tempered long-term rate growth somewhat, although 2021’s winter storm crisis showed just how unpredictable costs can be.
Natural gas has followed a similar trajectory. While prices have spiked periodically, the 10-year growth average is between 20–30%, depending on the state.
🧺 Why This Matters for the Laundry Business
If you operate a laundromat, on-premise laundry, or any commercial cleaning operation, your largest utility cost may soon be water—not electricity. This is especially true for businesses that have upgraded to high-efficiency electric dryers and washers, reducing power consumption but still relying heavily on municipal water and sewer systems.
Understanding this shift is key:
- When projecting expenses, build in a 5–7% annual increase for water/sewer—or more if your local utility is planning capital projects.
- Consider rainwater harvesting in new builds where allowed.
- For larger On-Premise businesses, graywater repurposing may be a viable option.
- Work with equipment providers who understand water efficiency inside and out—not just power consumption.
🧠 Final Thoughts: Plan Smarter, Not Just Leaner
Utility costs are a fundamental part of operating expenses, but not all utilities are created equal when it comes to long-term cost pressure. Electricity and gas get the headlines—but water is the one creeping up on your bottom line, year after year.
If you haven’t looked at your 10-year water/sewer history, now’s the time. More importantly, if you’re budgeting for the next decade, it’s time to prioritize water efficiency in your operations—and make sure you’re not blindsided by the one utility you can’t afford to ignore.