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Developing Defensible Capacity Standby Charges for the Metropolitan Sewer District of Greater Cincinnati

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Some of the large customers of the Metropolitan Sewer District of Greater Cincinnati (MSD) have indicated a desire to discontinue ongoing active use of the regional collection, interceptors, and treatment and discharge facilities but will likely need to maintain access to MSD's system for emergency or standby use. Given MSD's investment in developing and maintaining system capacity for its active and standby customers, capacity standby charges are recommended to assist MSD in maintaining the capacity a standby customer may use as a result of emergencies or other situations. Appropriate standby charge methodologies as seen in electric and water industries is discussed, while the impacts on MSD of a large user's withdrawal from the wastewater system while still maintaining standby capacity are analyzed. The recommendation for calculating a defensible capacity standby charge following MSD's cost-of-service rationale and based on individual capacity requirements is presented.
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Document Type: Research Article

Publication date: 2008-01-01

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