AWWA ACE91112

Based on a recent survey, a literature search covering the last decade, and the authors' broad perspectives on the topic, this paper describes and summarizes the changes and trends in water rates that have evolved during the 1980s and postulates on the major changes that can be expected in the 1990s. Included are both the magnitude of change in terms of prices charged per unit of consumption (per 1,000 gal) and the direction of change--that is, the types of rates or rate structures employed. The use of declining block rate structures waned during the 1980s with more and more water utilities opting for uniform rates, increasing block rates, or rates based on marginal (or incremental) costs. In addition to these shifts, this paper looks at a range of structures being adopted in increasing numbers and considered throughout the country, including seasonal rates, separate customer classes, demand and service charges, lifeline rates, and impact fees. A table offers a ten-year comparison of water rates for 30 utilities surveyed. Factors that have contributed to increasing rates are discussed. Water rates through 1999 are projected in a graph, with consumer impacts discussed. The author concludes that increasing rates will result in more customer and political involvement in the rate- setting process; four suggestions for dealing with these developments are offered.

Product Details

Published:

01/01/1991

ISBN(s):

089867591X

Number of Pages:

13

File Size:

1 file , 560 KB