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Show WATER PRICING POLICY STUDY 2.5 - CO 2 3 2|- < 0 o § 1.5 1 - 0.5 - Figure ES- 6 Ratchet Rate Illustration 10 20 30 MONTHLY WATER USE ( IN 1,000 GALLONS) 40 Spatial Rates Spacial rates take into account the varying cost of delivering water to different pumping zones, specifically the extra energy and facilities costs involved in delivering water to locations beyond the central service district area. Pumping costs represent one set of costs in a utility's total revenue requirements that can be allocated to specific customers or customer classes. Pumping facilities and energy costs comprise the main components of pumping. Facilities costs represent a second component of a utility's cost structure that may affect spacial rates. Facilities constructed to serve geographically isolated customers may, equitably, be charged to those customers directly. Identification and allocation of facilities and pumping costs will generally require special studies at the outset to identify pumping zones, costs of serving the zones, and to assign neighborhoods, subdivisions, or street addresses to each zone. The implementation of the rates will necessarily involve address tracking that might differ from normal billing software. This can make spacial rates more expensive to develop and implement. Executive Summary ES- 20 |
