AWWA ACE93050

Water utilities face increasing scrutiny of their ratemaking practices as their rates continue to climb. As the stakes rise, customers are demanding more involvement in ratemaking decisions and are more likely to pursue costly and potentially divisive rate litigation. Contract or policy based rates are particularly problematic; as customers fight against inter-class subsidies, rates which do not have a cost basis become less tenable. At the heart of much of the divisiveness over rates are issues which pit retail customers against their wholesale counterparts. Water utilities, for whom rate challenges offer pyrrhic victories at best, may avoid rate litigation by working to strike a balance between wholesale and retail customers' rate concerns. The City of Austin's recent cost of service ratemaking efforts offer an example of such an approach.

Product Details

Published:

01/01/1993

ISBN(s):

0898677114

Number of Pages:

16

File Size:

1 file , 770 KB