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Cost of Service and Legal Consideration

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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.

Keywords: Budget-based rates; cost of service; legal requirements

Document Type: Research Article

DOI: http://dx.doi.org/10.2175/193864710798286128

Publication date: January 1, 2010

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  • 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 These proceedings are not peer reviewed.

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