AWWA JAW56926

Public water utilities formulate service rates to accomplishseveral goals. Three common rate-making goals are: stability, or the ability to generate revenue reliably; equity, or the degree to which rates reflect customers' cost ofservice; and, conservation, or the efficient use of naturalresources. In many cases, utilities that have tried to improve theequity and/or conservation qualities of their rates have riskedincreased revenue volatility. Part of the answer to this dilemmamight be fixed monthly rates tailored to reflect individual customers'usage patterns. By adopting cost-of-service fixed rates foreach individual customer, rather than classes of customers,utilities can achieve greater customer equity, enjoy a stablerevenue base, and send more accurate price signals to promoteconservation. Includes 10 references, tables, figures.

Product Details

Edition:

Vol. 94 - No. 10

Published:

10/01/2002

Number of Pages:

11

File Size:

1 file , 890 KB