WATER & SEWER BASE FEES - SUB-METERING
Regarding “Base Fees” charged by your municipal supplier, the charges are a factor in in the utility’s total revenue structure. Some municipal utilities charge higher per gallon rate, while others charge less and include higher base fees.
Seems simple, but not really:
- Base Fees make up for non-revenue producing water;
- Non-revenue water consumption is due to aging infrastructure (old meters and leaking pipes). Old meter do not capture (measure low flow).
- New smart meters (like used in sub-metering) can identify wastes and leaks, then water consumption drops, and the utility charges more in base fees to offset the loss of revenue producing water.
- Finally, your state’s Public Utility Commission reviews the rational of water rates, however Sewer is typically not regulated by the PUC: Sewer infrastructure is financed through Revenue Bonds; Sewer Rates are set to insure the Bond investors gets paid.
Seems Fair ?
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