AWWA JAW64702 Journal AWWA - Policy Objectives in Designing Water Rates

Journal Article by American Water Works Association, 05/01/2007

Gaur, Sanjay

Full Description

There are four identified policy criteria that wateragencies may consider when designing their water ratestructures. A rate structure should be financially sustainable,socially equitable, environmentally sound,and administratively manageable. However, there isno universal rate structure that meets all of the objectivesof these criteria because the objectives tend toconflict with each other. In addition to consideringthese policy criteria, a water agency should also identifythe following four key components when developinga rate structure: the revenue requirement; the classificationof system cost; the allocation to customerclasses; and, the design of the rate structure. Eachwater agency must prioritize these policy criteria andcharacteristics to determine the "correct" water ratestructure for its specific community. Understandingyour community's makeup and priorities, as well asthe needs of the water utility, and clearly defining anddocumenting your rate structure process are the key toa positive result. Includes table, figures.

Product Details

Edition: Vol. 99 - No. 5 Published: 05/01/2007 Number of Pages: 5 File Size: 1 file , 290 KB