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DC Water Refinancing Saves Millions, Supports Affordability for Customers

DC Water Secures 10 Consecutive Years of a “AAA” credit rating from S&P

The District of Columbia Water and Sewer Authority (DC Water) has once again secured high credit ratings from all three major rating agencies—S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings—further strengthening our position as a national leader in public utilities. These ratings not only reflect confidence from the financial markets, but they also directly benefit our customers by supporting lower borrowing costs and more affordable water and sewer rates.

“These outstanding ratings are more than just a financial achievement—they’re a testament to our commitment to the communities we serve,” said David L. Gadis, CEO and General Manager. “Every dollar we save through prudent fiscal management and favorable bond rates is a dollar we can keep in the pockets of our customers. Our focus on strong governance and smart investment means we can keep rates stable, invest in critical infrastructure, and ensure safe, reliable service for everyone who depends on us.”

All three rating agencies— S&P, Moody’s and Fitch—highlighted several common strengths pointing to DC Water’s “strong financial profile” and “robust liquidity” while noting “independent rate-setting authority” as a key factor in fiscal resilience. DC Water was also acknowledged for its customer affordability and prudent management, recognizing long-term infrastructure investments and sound capital planning, including major initiatives like the Lead Free DC program and Clean Rivers Project.

S&P Global Ratings

S&P Global Ratings reaffirmed the ‘AAA’ rating on existing senior-lien bonds and assigned a ‘AA+’ rating to DC Water’s upcoming subordinate-lien bonds —recognizing exceptional management policies, strong financial performance, and the successful execution of a $9.7 billion ten-year capital improvement plan. S&P’s analysis highlighted DC Water’s integrated strategic planning, comprehensive rate structure, and customer assistance programs that keep rates affordable, particularly for those most in need. The agency also pointed out DC Water’s resilience in the face of economic headwinds, maintaining robust coverage and cash reserves despite regional job losses, and its strong governance as a credit strength that supports long-term sustainability.

Moody’s Investors Service

Moody’s Investors Service maintained its Aa1 (senior lien) and Aa2 (subordinate lien) ratings, underscoring DC Water’s strong financial metrics, stable service area, and excellent rate management. Moody’s pointed to the Authority’s consistent operating performance, healthy debt service coverage, and robust liquidity—well above policy targets. Moody’s noted the low long-term liability burden relative to peer cities, the Board’s independent rate-setting authority, and the presence of major institutional customers like the federal government, which provide a stable revenue base. The stable outlook reflects confidence in DC Water’s ability to manage rate adjustments and maintain healthy financials while investing in the system for future generations.

Fitch Ratings

Fitch Ratings gave DC Water a strong ‘AA’ rating to DC Water’s subordinate lien bonds and reaffirmed the ‘AA+’ rating on senior-lien bonds, along with a top-tier ‘F1+’ rating on commercial paper.  The rating recognizes the Authority’s strong financial profile, revenue flexibility, affordable rates, healthy income, and steady capital investments. Their “stable outlook” shows confidence that DC Water will continue to keep rates reasonable and invest in reliable service for the community.

Together, these high ratings from the “Big Three” signal to both the financial and bond markets—and to the residents and businesses we serve—that DC Water remains a model of fiscal health, operational excellence, and customer commitment. By maintaining strong credit, we can continue to deliver safe, reliable, and affordable water and sewer services, while investing in the infrastructure that keeps our region running strong.

DC Water today announced the launch of Pure Water DC, a groundbreaking program designed to strengthen the District’s water supply resilience and secure a second source of drinking water for the nation’s capital. This effort comes in response to growing risks posed by reliance on a single water source—the Potomac River—and the Washington Aqueduct, which currently supplies 100% of DC Water’s drinking water.

“Any disruption to the Potomac River or the Aqueduct would have catastrophic consequences—not just for Washington, DC, but for the entire region,” said David L. Gadis, CEO and General Manager of DC Water. “Pure Water DC is planning ahead, investing wisely, and ensuring that our customers, our economy, and our national security are protected. This is not optional—it’s essential.”

To kick off this initiative, DC Water convened a panel discussion along with industry experts, utilities, and federal and state regulators from across the region. The panel explored practical ways to make our water supply more resilient, including advanced water reuse —a growing solution nationwide to address vulnerabilities in the water supply. This method relies on advanced treatment processes to purify water to drinking standards so it can be safely recycled for various purposes.

“Last year’s close call exposed a critical vulnerability, when we came within 30 minutes of exhausting our water supply on the eve of Independence Day —a near crisis that affected nearly a million residents and visitors,” said Dr. Unique Morris-Hughes, Chair of DC Water’s Board of Directors. “We cannot allow that to happen again. Pure Water DC is our answer to ensure water resilience.”

The Pure Water DC strategy lays out a portfolio of solutions to address this vulnerability, including:

• Exploring advanced water reuse at DC Water’s Blue Plains facility as a drought-proof, cost-effective second source of water.
• Safeguarding the current source and optimizing DC Water’s distribution system.
• Adding local storage and collaborating on long-term regional emergency storage efforts, such as Travilah Quarry in Maryland and others in Virginia.

DC Water has committed $21 million in seed funding over the next three years to pilot technologies, conduct research, and engage regulators and the public. A key component of this work will be the Pure Water DC Discovery Center, scheduled to break ground in 2026, which will serve as a hub for innovation, education, and collaboration.

Pure Water DC’s Discovery Center will contribute research and data as part of an ongoing feasibility study by the US Army Corps of Engineers (USACE) to accelerate understanding of how water reuse can strengthen the region’s water supply.

The U.S. Environmental Protection Agency’s National Water Reuse Action Plan (WRAP) also designated Pure Water DC as a WRAP action, joining dozens of other priority initiatives to advance water reuse nationwide.

“EPA proudly welcomes DC Water to our WRAP family, strengthening our network and reinforcing our commitment to secure water solutions,” said Andrew Sawyers, Director of EPA’s Office of Wastewater Management. “DC Water’s WRAP action emphasizes collaboration, pulling together local, federal, and regional partners to explore solutions to their water supply challenges.”

A 2024 study by the Interstate Commission on the Potomac River Basin estimated that a major disruption to the region’s water supply could result in $15 billion in regional economic losses in just the first month. With more volatile weather patterns, extreme drought, and growing demand—including data centers—these risks are increasing.

Pure Water DC is not just a DC Water initiative—it’s a regional call to action. The program invites collaboration among utilities, agencies, and stakeholders across the Washington Metropolitan Area to build a resilient water future together.