There are four identified policy criteria that water
agencies may consider when designing their water rate
structures. A rate structure should be financially sustainable,
socially equitable, environmentally sound,
and administratively manageable. However, there is
no universal rate structure that meets all of the objectives
of these criteria because the objectives tend to
conflict with each other. In addition to considering
these policy criteria, a water agency should also identify
the following four key components when developing
a rate structure: the revenue requirement; the classification
of system cost; the allocation to customer
classes; and, the design of the rate structure. Each
water agency must prioritize these policy criteria and
characteristics to determine the "correct" water rate
structure for its specific community. Understanding
your community's makeup and priorities, as well as
the needs of the water utility, and clearly defining and
documenting your rate structure process are the key to
a positive result. Includes table, figures.
| Edition : | Vol. 99 - No. 5 |
| File Size : | 1
file
, 290 KB |
| Note : | This product is unavailable in Ukraine, Russia, Belarus |
| Number of Pages : | 5 |
| Published : | 05/01/2007 |
