If your facility is exploring ways to reduce operating costs, water efficiency is often the first place to look. A secondary benefit may be available when the sewer tariff uses the same water-meter usage, but that depends on the billing formula for your individual account.
Here is how that works, where it applies, and what it means for your bottom line.
How Can a Commercial Property Lower Its Sewer Bill?
Start with the account's wastewater tariff. If the variable sewer charge is calculated from metered water use, reducing the billed meter volume may lower that variable charge. The practical first step is to separate variable charges from fixed fees and then model the lower meter reading against the utility's published formula.
Are Water and Sewer Bills Separate or on the Same Bill?
It depends on the utility. Some commercial properties see water and sewer as separate line items on one statement, while others receive separate bills from different providers. A shared statement does not mean both charges use the same formula, so review each line item and the supporting rate schedule.
What Is the Difference Between Water and Sewer Charges?
Water charges generally cover delivery of potable water to the property. Sewer or wastewater charges generally cover collection and treatment after water leaves the property. Because many utilities do not meter wastewater directly, they may use water-meter usage as a billing proxy—but the rate, fixed charge, and exceptions can differ.
How Do Commercial Sewer Bills Work?
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 can mean your sewer bill is a multiplier applied to the same number your water meter produces. When that formula applies, a lower meter reading may lower the sewer charge; the amount depends on the utility's rates, fixed charges, tiers, caps, and billing period.
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."
These examples show why the water bill and sewer bill should be reviewed together. They do not establish a universal rule for every municipality or commercial account.
What This Means for Your Facility
If your commercial property is billed for sewer based on water meter readings, a practice that reduces metered water consumption may reduce both line items. The result is not automatic: confirm how your account handles fixed charges, minimums, seasonal averages, caps, and any water that does not enter the sewer system.
For project-specific context, review the published Smart Valve™ results portfolio separately from your local sewer tariff. Hospital teams can also use the hospital water-cost guide when reviewing facility demand and billing.
Example calculation:
Illustration only: if your facility spends $8,000/month on water and $6,000/month on sewer, and both line items vary directly with metered consumption, a 20% reduction would lower them by approximately $1,600 and $1,200. That would be approximately $2,800/month combined; actual savings depend on your utility's rate structure.
The possible combined effect is tied to how your utility calculates sewer charges; it should be modeled from your own bill rather than assumed.
When Does Reduced Water Use Not Lower Sewer Charges?
Reduced water use may not lower sewer charges when the account uses flat-rate charges, a minimum bill, seasonal or winter averages, caps, tiers that are not reached, or a separate sewer meter. Water used for irrigation or other non-sewer purposes may also be handled differently. These details are set by the local tariff, not by a general rule.
How to Check Your Municipality's Sewer Billing Method
Do not assume the sewer line item changes with lower water use until you confirm your municipality's billing method. Check these items:
- Find the sewer or wastewater line item and note whether it changes with current metered use.
- Look for a fixed charge, minimum bill, cap, tier, seasonal average, or winter-average rule.
- Ask the local water authority whether commercial accounts use a separate sewer meter or a water-meter formula.
- Use the published rate schedule to model the effect of a lower meter reading before treating it as savings.
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
Smart Valve™ works by holding controlled back pressure in the zone between the valve and the meter, keeping entrained air compressed to its true volume as it crosses the billing point. Because most commercial water systems carry a significant volume of entrained air — air that your meter registers as water volume — this compression directly reduces the amount of air being billed as water.
For qualifying properties, an assessment may lead to written Smart Valve™ performance terms for metered water savings after the contract is confirmed. In municipalities where sewer charges use water-meter readings, any lower sewer charge depends on that local formula; sewer savings are not guaranteed.
Published water-meter evidence, including the Amazon YYZ3 case study, should be read separately from local sewer billing outcomes. For the device mechanism and technical reference material, see the AWS Hybrid Technical Guide.
A commercial property with approximately $5,000 or more per month in combined water and sewer charges may be worth screening for a site-specific assessment. Actual site fit and savings are assessment-specific and depend on the property and its billing structure.
Frequently Asked Questions
Q: Does reducing water consumption lower your sewer bill?
A: Often, but not always. If your municipality calculates commercial sewer charges from your water meter, lower metered consumption can lower both line items. Flat-rate, seasonal-average, tiered, capped, or separately metered accounts may work differently.
Q: Does the Smart Valve™ guarantee sewer bill savings?
A: No. Any written Smart Valve™ performance terms apply to qualifying water-meter savings after assessment and contract confirmation. Sewer savings depend on your municipality's billing method, so the local sewer charge must be confirmed separately.
Q: How do I know if my municipality calculates sewer charges from water usage?
A: Review the water and sewer line items on a recent commercial bill, then confirm the formula and any caps, seasonal averages, or fixed charges with the local water authority.
Q: Does this apply to residential properties too?
A: Residential sewer billing methods also vary. Some municipalities use winter-average water use rather than current consumption, and this Smart Valve™ program is designed for commercial and multi-residential properties.
Summary
Many commercial accounts use water-meter usage to calculate at least part of the sewer charge. When that local formula applies, reducing metered water use may reduce both the water and sewer portions of the bill. For facilities with significant sewer charges, the potential secondary savings should be modeled from the account's own tariff and rate schedule rather than assumed.
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.