Developing Rates for Small Systems

Book excerpt: The brand new manual provides step-by-step guidance to determine revenue requirements, analyze rates, develop a financial plan, and design a better rate structure -- even with limited resources and data. Written for small water systems (defined as serving a population of up to 10,000) it focuses on the unique attributes of small systems as related to financial planning and rate design, with the understanding that most data is contained in the current customer billing system, and merely needs to be massaged. With details plus a sample case study, it helps develop a rate structure that emphasizes simplicity and ease of billing, while at the same time recognizes cost recovery and equitability. Also covered are communications with the public, which is integral to a successful rate restructuring, regulatory approval, system development funding, and rate phase-in.