Public water utilities formulate service rates to accomplish
several 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 of
service; and, conservation, or the efficient use of natural
resources. In many cases, utilities that have tried to improve the
equity and/or conservation qualities of their rates have risked
increased revenue volatility. Part of the answer to this dilemma
might be fixed monthly rates tailored to reflect individual customers'
usage patterns. By adopting cost-of-service fixed rates for
each individual customer, rather than classes of customers,
utilities can achieve greater customer equity, enjoy a stable
revenue base, and send more accurate price signals to promote
conservation.
Includes 10 references, tables, figures.
| Edition : | Vol. 94 - No. 10 |
| File Size : | 1
file
, 890 KB |
| Note : | This product is unavailable in Ukraine, Russia, Belarus |
| Number of Pages : | 11 |
| Published : | 10/01/2002 |
