If your facility is exploring ways to reduce operating costs, water efficiency is often the first place to look. But many property managers and business owners overlook a secondary benefit that can meaningfully increase total savings: when you reduce metered water consumption, your sewer bill typically drops at the same time.
Here is how that works, where it applies, and what it means for your bottom line.
How Sewer Bills Are Calculated in Most U.S. Municipalities
Most commercial sewer charges in the United States are not based on a separate sewer meter. Because measuring what actually flows into the sewer system is technically complex and expensive, the majority of municipalities use a simpler method: they calculate your sewer charge as a function of your water meter reading.
In practical terms, this means your sewer bill is a multiplier applied to the same number your water meter produces. Reduce the water meter reading, and the sewer charge drops proportionally.
This billing method is confirmed by multiple major U.S. utilities:
- •Portland, Oregon (Portland Water Bureau): "Commercial sewer charges are based on actual water use."
- •Los Angeles, California (LADWP): "The Sewer Service Charge (SSC) is based on metered water use."
- •New York City: "Most properties are charged a metered water and sewer bill based on water usage, meaning the more water a property uses, the higher the bill. (NYC IBO, October 2024)"
- •District of Columbia Water Authority: "Your sewer bill is based on the amount of water that goes through your water meter."
- •Colorado Springs Utilities: "Wastewater bill is based on average water use."
- •Lehi City, Utah: "The per gallon charge for sewer bills is typically calculated based on water usage."
This pattern is consistent across large and small municipalities alike. The American Water Works Association (AWWA) and EPA both acknowledge that metered water consumption is the dominant basis for commercial sewer billing in the United States.
What This Means for Your Facility
If your commercial property is billed for sewer based on water meter readings — which is the case in the majority of U.S. cities — then any technology or practice that reduces your metered water consumption will produce compound savings across both line items on your utility bill.
Example calculation:
If your facility spends $8,000/month on water and $6,000/month on sewer, and a water optimization system reduces your metered consumption by 20%, your water bill drops by approximately $1,600/month. But your sewer bill also drops by approximately $1,200/month — for a combined monthly savings of $2,800, not $1,600.
This compounding effect is rarely discussed in water efficiency conversations, but it is real, measurable, and directly tied to how your utility calculates sewer charges.
Important Caveat: Not Every Municipality Bills This Way
While the consumption-based sewer billing model is the most common approach in the United States, it is not universal. Some municipalities use flat-rate sewer charges that do not vary with water consumption. Others may use a tiered or seasonal average. A small number of commercial properties have separate sewer meters entirely.
Before assuming your sewer bill will drop alongside your water bill, it is worth confirming your municipality's billing method. This can typically be done by reviewing your utility bill, calling your local water authority, or reviewing the rate schedule on your utility's website.
If you are unsure, Perfect Water Valve can help you review your current billing structure as part of the free site assessment process.
How Smart Valve™ Affects Both Bills
The Smart Valve™ works by removing excess air from commercial water lines before that air passes through the water meter. Because most commercial water systems carry a significant volume of entrained air — air that your meter registers as water volume — the Smart Valve™ reduces the amount of air being billed as water.
The result is a reduction in metered water consumption of 15%–35% for qualifying properties, guaranteed in writing. In municipalities where sewer charges are calculated from water meter readings, this reduction flows directly through to the sewer line item as well.
For a commercial property spending $10,000 or more per month on combined water and sewer, the total utility savings from a single Smart Valve™ installation can be substantially higher than the water bill reduction alone suggests.
Frequently Asked Questions
Q: Does the Smart Valve™ guarantee sewer bill savings?
A: The Smart Valve™ program guarantees a minimum 15% reduction on your water bill. In municipalities where sewer charges are based on water meter consumption — which is the majority of U.S. cities — sewer savings will typically follow. However, because sewer billing methods vary by municipality, we guarantee the water bill reduction only. We recommend confirming your local billing method to understand the full scope of potential savings.
Q: How do I know if my municipality calculates sewer charges from water usage?
A: Check your utility bill. If your sewer charge line item changes month to month in proportion to your water usage, it is consumption-based. You can also call your local water authority and ask directly how commercial sewer charges are calculated.
Q: What is the typical sewer-to-water bill ratio for commercial properties?
A: This varies significantly by municipality and property type. In many U.S. cities, commercial sewer charges are roughly 60%–100% of the water charge. For high-water-use facilities like hotels, food processing plants, and multifamily properties, sewer charges can exceed the water charge.
Q: Does this apply to residential properties too?
A: The Smart Valve™ program is designed for commercial and multi-residential properties. Residential sewer billing methods also vary — some municipalities use winter average water use rather than actual consumption for residential accounts.
Summary
In the majority of U.S. municipalities, commercial sewer charges are calculated directly from metered water consumption. This means that reducing your metered water usage — through a system like Smart Valve™ — produces compound savings across both your water and sewer bills simultaneously. For facilities with significant sewer charges, this secondary savings stream can meaningfully increase the total return on a water optimization investment.
Sources: Portland Water Bureau, Los Angeles Department of Water and Power, NYC Independent Budget Office (October 2024), DC Water Authority, Colorado Springs Utilities, American Water Works Association, U.S. EPA WaterSense.