AWWA ACE69114

This powerpoint presentation begins by providing a brief overview of water rate-making, including laws that heavily influence defensible rate-making practices and the national perspective. California legal developments are presented, including Government Code Section 54999 and Proposition 218. Implications for Conservation Pricing are provided, along with the cost of service meaning and compliance issues. Presentation summary includes the following points: adhere to the legal and technical principles of rate making; comply with laws and regulations relevant to the utility's legal authority; California now has specific rate requirements stemming from Prop 218 and GC 54999; follow recommended guidelines for rate making by AWWA; implement a rate design that recovers costs from customers proportional to the costs to service them; and, avoid subsidization by, and of, any customer class or within a class. Includes figures.