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AWWA JAW26080
- Journal AWWA - Long-Term Contracts for Large Users: An Industry Viewpoint
- Journal Article by American Water Works Association, 05/01/1989
- Publisher: AWWA
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General Motors Corp. (GM) negotiates rate and service contracts with its water suppliers as often as possible, based on fairness to the water utility, the utility's other customers, and GM. Water rates, in GM's view, should be adequate to maintain the operational and financial stability of the utility as a self-supporting enterprise and should be based on the cost of service, without cross-class customer subsidization or revenue subsidies. Detailed rate and service contracts are used by GM as vehicles to achieve these goals with its water suppliers. A listing of contract provisions to consider when writing a contract between a large water user and a water utility is provided.
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