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Special Considerations in Design of Water Rates
This article discusses the basic premise that water rates must be designed to recover the total annual costs of a water utility. Topics covered include: the difference in revenue requirements between investor‐owned and publicly owned water utilities; depreciation expense as a revenue requirement; establishing a base year from which projections can be made; comparisons of operating ratios; future revenue requirements; application of principles of pricing; avoidance of undue discrimination; typical rate schedules; use of block rates; demand component of cost; demand rates; zone rates; and, miscellaneous considerations.
Special Considerations in Design of Water Rates
This article discusses the basic premise that water rates must be designed to recover the total annual costs of a water utility. Topics covered include: the difference in revenue requirements between investor‐owned and publicly owned water utilities; depreciation expense as a revenue requirement; establishing a base year from which projections can be made; comparisons of operating ratios; future revenue requirements; application of principles of pricing; avoidance of undue discrimination; typical rate schedules; use of block rates; demand component of cost; demand rates; zone rates; and, miscellaneous considerations.
Special Considerations in Design of Water Rates
Luthin, John C. (author)
Journal ‐ American Water Works Association ; 55 ; 325-335
1963-03-01
11 pages
Article (Journal)
Electronic Resource
English
Revenues , Design , Costs , Utility Management , Water Rates , Water Demand
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