Water Rates and Conservation


Rate setting is part of a complex process that includes demand forecasting, cost of service analysis, customer class cost allocation, and determining revenue requirements. There are also political and regulatory factors at play. Additionally, water providers are natural monopolies and rates must be reasonable and prudent, and equitable and nondiscriminatory.

Related News

February 28, 2017
In the wake of flat or falling sales revenues, many a water (and energy) utility have turned to the idea of raising fixed charges. This might seem logical, given that water services require substantial fixed infrastructure costs; that is, they are particularly capital intensive. Monopolies are...
March 15, 2013
Every water provider faces a unique set of circumstances that determine whether or not water efficiency programs will be cost-effective. What works for one water utility may or may not work for another. This is particularly true in regard to current and future costs of providing water service that...