• AWWA SOURCES55683
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AWWA SOURCES55683

  • Know What You Get for Your Money
  • Conference Proceeding by American Water Works Association, 01/01/2002
  • Publisher: AWWA

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When an economic analysis is done to determine the rates associated with a particular reclaimed water project, it is often compared against the current cost of potable water supply. The analysis takes into consideration the cost associated with the next incremental source of potable water supply. The resulting reclaimed water is often a percentage of the prevailing drinking water rate. In this analysis, it is important not to confuse water cost and water price. The cost of water is all the costs associated with the next incremental source of water supply, the price of water is arrived at based on one of the previously discussed water rate setting philosophies. The purpose of this paper is to present three distinctly different case studies associated with reclaimed water rate making. One case study is from the viewpoint of a sanitary district, the next from the viewpoint of a regional entity providing wastewater treatment for several cities and the last from a water district. The overall intent is to explore how each entity approached the development of their reclaimed water rates and to also identify which costs should be considered in the development of reclaimed water rates. Includes table, figure.

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