AWWA M54:2016 pdf download.Developing Rates for Small Systems
The primary source of customer information is the utility’s customer billing system. Much of the information that is necessary to produce a utility bill is the same information that is required to establish water rates. The development of a rate structure can be hampered by inaccurate customer billing records, resulting in rates that do not generate sufficient rev- enue to meet the utility’s revenue requirements, satisfy its debt covenants, and provide fair and equitable charges to its customers. In the absence of adequate or accurate customer records, the utility should make an investment to improve its customer information before moving forward with a comprehensive rate review. Prior to such an investment, how- ever,? the? utility? should? attempt? to? identify? various? shortfalls? and? problems? with? its? exist- ing customer records. Possible improvements could include a customer profile survey, the re-creation of records, and compilation of other information that could assist in the devel- opment of equitable rates and charges (e.g., determining equivalent residential units [ERUs] as discussed later in this chapter) dependent on the particular shortfalls in the util- ity’s customer database.
It is also critical to understand the limitations of the existing billing system in imple- menting alternative rate structures. Rate structures that require information that is not currently maintained in the existing database or that cannot be collected and entered eco- nomically or efficiently should not be considered unless plans exist to modify the billing system.
As previously stated, it is likely that much of the information necessary to develop a schedule of water rates is contained and available within the utility's billing system. . However, accessing that data in a timely and cost-effective fashion may not be possible. It is important that, as part of the rate-study process, ample time is allowed for the iden- tification, extraction, compilation, and review of the customer data from the electronic database. There may be technical challenges in each step of this process that slow access to this information. These technical issues should be identified and corrected if possible. Once retrieved from the database, this information should be reviewed and audited for accuracy and reasonableness. This data will be the foundation of the utility's water rates, and errors in the data could result in inappropriate rates or in the utility collecting too little or too much revenue.AWWA M54 pdf download.