Developing Rates for Small Systems by American Water Works Association

By American Water Works Association

Now, restricted facts or assets shouldn't have to maintain your small application from constructing a cost constitution that recovers your whole expenditures and is reasonable for your shoppers.

This legit handbook of perform provides the step by step counsel you must make certain your profit specifications, learn your premiums for various buyer periods, enhance a financial statement, and layout a greater fee constitution -- no matter if you have got restricted assets and information

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However, if year 1 results and/or the budget for the new year 1 are significantly different than projected, changes may be required to the plan of future annual revenue adjustments. Copyright © 2004 American Water Works Association, All Rights Reserved. This page intentionally blank. Copyright © 2004 American Water Works Association, All Rights Reserved. AWWA MANUAL Chapter M54 4 Rate Design INTRODUCTION _________________________________________________________________________ The data and resource constraints faced by a water utility can also affect the rate design alternatives available to these utilities.

From Table 2-4, lines 2 and 7. ‡From Table 4-1, line 11. 5% per year. Objectives Increasing Block Rate Uniform Block Rate Seasonal Block Rate Flat Rate Fairness Conservation Equity Cost-of-Service Based Understandable Feasible Defendable Revenue Stability Cost Recovery Legal Key: Relative Support of Objective Satisfactory High Figure 4-3 Low Example of evaluation Copyright © 2004 American Water Works Association, All Rights Reserved. RATE DESIGN 39 RATE EVALUATION____________________________________________________________________ Rate evaluation is the process of measuring a particular rate design against the desired objectives to see how it complies with these objectives.

Alternative 3: Equal Annual Increases This plan identifies the annual percentage revenue increases that are necessary in each year of the projection period to allow implementation of equal annual percentage revenue adjustments, while resulting in sufficient revenues to meet all revenue requirements by the end of the five-year projection period. To meet the cumulative projected reserve and cash flow deficiencies under existing rates from the example shown in Table 2-4, equal annual percentage rate adjustments of 4% per year will be required.

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