This powerpoint presentation begins by providing a brief overview of water rate-making, including
laws that heavily influence defensible
rate-making practices and the
national perspective.
California legal developments are presented, including
Government Code Section 54999 and
Proposition 218.
Implications for Conservation Pricing are provided, along with the
cost of service meaning and
compliance issues. Presentation summary includes the following points:
adhere to the legal and technical principles of rate
making;
comply with laws and regulations relevant to the utility's
legal authority;
California now has specific rate requirements stemming
from Prop 218 and GC 54999;
follow recommended guidelines for rate making by
AWWA;
implement a rate design that recovers costs from
customers proportional to the costs to service them; and,
avoid subsidization by, and of, any customer class
or within a class. Includes figures.