6. Allocating Costs of Services to Cost-Causative Components

Water Environment Federation

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6. Allocating Costs of Services to Cost-Causative Components

Financing and Charges for Watewater Systems, MOP 27, 5th Edition

PublisherWater Environment Federation

Word count10,479

Chapter purchase price $15.99

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Financing and Charges for Watewater Systems, MOP 27, 5th Edition

This 5th edition of Financing and Charges for Wastewater Systems provides an overview of current industry practices that should be considered for financing and establishing rates and charges for wastewater collection and treatment systems. In addition, this Manual of Practice reflects and is responsive to changes in the industry over the past 6 years that have occasioned a heightened awareness about wastewater utility financial management, the rapid rise in cost of operations and capital investment, and the increased scrutiny of equitable distribution of cost responsibilities across customer groups or classes. These events and changes, including tightening environ mental regulation and replacement of aging infrastructure, have resulted in a pronounced increase in the cost of wastewater services. Though there have been several federal initiatives over the past 6 years to infuse funding to the wastewater sector, costs have outpaced available funding and assistance and challenge the affordability of this vital service. In this context, guidance on wastewater rate-setting practices and, particularly, the distribution of costs across user groups are of critical importance. As individual wastewater utilities address their financial-management challenges, it is important that their practices for setting rates and charges be responsive to the unique circumstances and values of the communities they serve. Accordingly, this manual offers industry-accepted guidance in addressing these challenges without prescribing specific methods. In many instances, acceptable methodological alternatives are presented. Financing and Charges for Wastewater Systems is structured to provide the reader with an overview of financing mechanisms for wastewater systems and a framework for development of wastewater rates and charges.

Author(s)

Water Environment Federation

CommitteeUtility Management Subcommittee of the Technical Practice Committee

Document typeDigital Book

PublisherWater Environment Federation

Print publication date May 2025

Print ISBN 978-1-57278-479-6

EISBN 9781572784796

Volume / Issue

First / last page(s)1 - 311

Word count99,692

Subject keywordsFinancial ManagementAccountingAffordabilityRates