Description
Public water utilities formulate service rates to accomplishseveral 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 ofservice; and, conservation, or the efficient use of naturalresources. In many cases, utilities that have tried to improve theequity and/or conservation qualities of their rates have riskedincreased revenue volatility. Part of the answer to this dilemmamight be fixed monthly rates tailored to reflect individual customers’usage patterns. By adopting cost-of-service fixed rates foreach individual customer, rather than classes of customers,utilities can achieve greater customer equity, enjoy a stablerevenue base, and send more accurate price signals to promoteconservation. Includes 10 references, tables, figures.
Product Details
- Edition:
- Vol. 94 – No. 10
- Published:
- 10/01/2002
- Number of Pages:
- 11
- File Size:
- 1 file , 890 KB
- Note:
- This product is unavailable in Ukraine, Russia, Belarus
