Skip to main content

REVENUE PROTECTION: THE SEWER FLOW STABILIZATION FACTOR

Buy Article:

$9.50 plus tax (Refund Policy)

Or sign up for a free trial

General Description

Many wastewater utilities use an abbreviated period of the year upon which to base the calculation of customer account sewer charges. However, the recalculation of the actual charge usually does not occur for some time after the period of the rate calculations. The actual rate which will be used to calculate the charge is most often approved by the regulatory or rate setting authority at a period of time prior to the time of the calculation of the customer account charge. This rate is also frequently calculated using prior year system water use data since sewers are not metered. The time lapse between these two actions creates a gap whereby the actual charges when calculated will not generate the revenue upon which the rate was based.

The City of Phoenix has developed a concept and process through the implementation of a “Sewer Flow Stabilization Factor” that ensures that the rate approved will always generate the revenue needed or projected. The adjustment process is defined and included in the Phoenix City Code. The City has also built into its automated billing system an automatic recalculation that includes this adjustment process. Since its inception in 1993, the City has been able to project annual wastewater revenues to within 99% accuracy. This presentation will explore the reason for the original development, the process, and its benefits as could be applied to all utilities.

Who Benefits

Having accurate customer sewer charges that can be adjusted to match as closely as possible the actual customer sewer flow benefits both the utility and the customer. Being able to safely adjust the sewer charge each year to match what is most appropriately matches the customers actual flow maintains a more accurate record to project sewer system and plant capacity. This, in turn, reduces the overall capital costs by helping the engineering staff of the utility better forecast needs. At the same time the customer is more satisfied that his or her sewer is being adjusted annually to better match their flow. The utility is benefited by the assurance that the revenues projected will be generated.

Universal Application

Any utility that uses water usage for a brief period of the year, such as December, January, and February, or any other time for that matter would benefit by considering this concept. For the process as described above, it totally eliminates the flaws inherent in customer sewer flow revenue projection.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Data/Media
No Metrics

Document Type: Research Article

Publication date: 2005-01-01

More about this publication?
  • Proceedings of the Water Environment Federation is an archive of papers published in the proceedings of the annual Water Environment Federation® Technical Exhibition and Conference (WEFTEC® ) and specialty conferences held since the year 2000. These proceedings are not peer reviewed.

    A subscription to the Proceedings of the Water Environment Federation includes access to most papers presented at the annual WEF Technical Exhibition and Conference (WEFTEC) and other conferences held since 2000. Subscription access begins 12 months after the event and is valid for 12 months from month of purchase. A subscription to the Proceedings of the Water Environment Federation is included in Water Environment Federation (WEF) membership.

    WEF Members: Sign in (right panel) with your IngentaConnect user name and password to receive complimentary access. Access begins 12 months after the conference or event
  • Subscribe to this Title
  • Membership Information
  • About WEF Proceedings
  • WEFTEC Conference Information
  • Learn about the many other WEF member benefits and join today
  • Ingenta Connect is not responsible for the content or availability of external websites
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more