AWWA ACE69005

This powerpoint presentation begins by presenting a brief overview of AWWA's Principles of Water Rates, Fees, and Charges including the following: outside-city service benefits; lower inside-city rates; economic development; Importance / Timeliness; increasingly common, legal disputes, limited guidance to date, and Preceding Guidance. Revenue requirement methodologies are presented, including risk factors and return determination. Customer classification, cost allocation, rate design and implementation issues are all presented. Presentation summary and conclusions indicate the following: outside-city service can convey significant benefits to all parties; economies of scale, municipal returns; unique circumstances of individual utilities determine relative advantages of alternative methods to determine revenue requirements, assessment of risks and return determination, customer classification, cost allocation procedures, and rate design; implementation requires extraordinary care and attention to legal and stakeholder issues. Includes figure.