Rates for water provided by Central Alaska Utilities for fire protection were based on a 1981 cost-of-service analysis of water and fire flow demands, and were approved by the Alaska Public Utilities Commission. Fire protection costs were then allocated to all water system users, who are charged for each block of fire flow demand required to protect their properties. Advantages and disadvantages of the alternative rate designs considered and the need to distinguish between capital costs and operation and maintenance costs are discussed. Includes 9 references, tables, figures.