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8 sie 2019 · Cost of Service Study (COSS) or Cost of Service Analysis • COSS is a detailed analysis intended to allocate a utility’s revenue requirements to its customers in an equitable manner • Horizontal equity: Customers with similar burdens on the system pay similar rates • Vertical equity: Customers with dissimilar burdens on
Review the basic mechanics of a cost of service and rate design study for water utilities. Learn valuable tools on obtaining buy-in or “selling” the need for a revenue increase to its constituent groups. Discuss real world examples based on generally accepted ratemaking principles. EUCI is authorized by IACET to ofer 1.0 CEUs for the course.
16 maj 2023 · Desert Water Agency – Cost of Service Study Prepared by NBS – May 2023 1 SECTION 1. PURPOSE AND OVERVIEW OF THE STUDY Purpose Desert Water Agency (DWA or “the Agency”) retained NBS to conduct a comprehensive Cost of Service Study which includes the Water, Sewer, and Recycled Water utilities. In DWA’s 2016 rate study, the
adequate supply of high-quality drinking water delivered at a price that not only covers all of the costs of providing the service but also allows the system to prepare and plan for providing that service
Balance of Fixed vs. Variable Rates • 90+% of water system costs do not decrease if water sales decline • ~30% of water system rate revenues from the Water Service Charge • Higher fixed fees enhance revenue stability and moderate impacts of drought • Lower fixed fees encourage conservation and require increased reserves
This introductory course reviews the basic mechanics of a cost of service and rate design study for water utilities. Participants will also learn valuable tools on obtaining buy-in or “selling” the need for a revenue increase to its constituent groups.
and prepare a Cost of Service Study (Study) and to develop rates and fees for its water and wastewater services. The study includes the following: • Development of a financial plan based on the 20 year capital plan • Analysis of the 2016 water and wastewater cost of service • Review and design of updated water and wastewater rates
