Rate And Rate Structure Designs For Small Water Systems In Illinois

One of a series of trainings conducted by the Environmental Finance Center Network for the Smart Management for Small Water Systems project.

How you charge your customers can be as important as how much you charge them. Different rate structure designs affect revenue generation and can either help or hinder varying objectives of the utility. Several designs of rate structures can be used to produce the same level of revenue for a water system, but each rate structure promotes fairness, affordability, conservation, business incentives, and other objectives at varying degrees. How much you charge also affects your system’s finances and your customers differently than another water system that charges the same rates. Understanding how to compare and benchmark rates against other water systems’ appropriately is important when presenting to the Board.

This webinar will cover two topics. First, we will describe different elements of water rate structures, and when it is appropriate to favor certain elements or rate structure designs over others based on the unique characteristics and objectives of the utility. Examples will be discussed and participants will have opportunities to ask questions. Second, we will describe how best to compare your rates against other systems’ rates by providing a demonstration of the Northeast Illinois Water and Wastewater Rates Dashboard.

Approved for 1.5 hours of training credit for drinking water certifications in IL; Course # 15324

Download the presentation slides (PDF).