Cost of Service and Legal Consideration
Abstract:Many water utilities are considering implementing budget-based water rates to enhance water conservation efforts. Budget-based water rates are a type of tiered water rate where the price charged to a consumer depends on an individual water budget for that customer. The individual water budgets can be determined in a number of ways but generally include an allowance for indoor water and outdoor water use based on estimates of the amount of water required for beneficial use. Water used in excess of the budget is priced at progressively higher rates to discourage wasteful use.
This paper examines the cost of service and legal requirements to implement budget-based rates. The paper is brief and is presented as part of a panel discussion on the topic.
Document Type: Research Article
Publication date: 2010-01-01
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