AWWA ACE91111

A seasonal surcharge is a predetermined increment to the base water rate, which is imposed during the period of peak demand, usually summertime. A beneficial aspect of an excess-use charge (or surcharge) is that it tends to result in a more equitable bearing of cost by individual customers. One consideration in developing surcharges is a suitable definition for excess use. There are a number of unknowns regarding the effect of seasonal rates on peak system demands. Price signals should reflect the marginal cost of providing additional limited capacity during seasonal demand periods, discourage consumption of that portion of discretionary water that may be used seasonally, and occur at that segment of the overall demand curve representing greater responsiveness to changes in price. Basic background information on formulating and implementing seasonal surcharges is given, using a case study in Pennsylvania to illustrate.

Product Details

Published:

01/01/1991

ISBN(s):

089867591X

Number of Pages:

9

File Size:

1 file , 320 KB