ALLOCATION OF RECYCLED WATER COSTS
Municipalities recognize the long-term economic, social, environmental and sustainable benefits of water reuse. Water reuse provides a drought resistant water supply source, often defers or eliminates potable water capital expansion investments, and reduces costs that would otherwise be the responsibility of the wastewater utility. However, recycled water programs often require large up-front capital investments, as well as, have limited demand for recycled water during the initial years of the program. Recycled water costs may be shared between water and wastewater users, both through rates and capital facility charges. Cost allocation methods can also allow for economic incentives to attract recycled water users which are currently using potable water or future users that would otherwise rely on potable water. This paper will explore cost allocation and rate setting strategies designed to attenuate the upfront financial burden often incurred when implementing a fledgling recycled water program.
Document Type: Research Article
Publication date: 2005-01-01
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