Tiered Water Rates: Understanding Their Equity and Impacts on Customer Bills

Source: Greg Clumpner, Journal – AWWA, Volume 111 Issue 9, September 2019
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Key Takeaways
Rate design affects individual customer bills and the equity of individual ratepayers within (not just between) customer classes.

A better understanding of tiered rates may lower the risk of ratepayers seeing water and wastewater rates as inequitable.

Water utilities should demonstrate the cost basis of water rates, especially how tiered rates reflect water supply costs and quantities.