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:

  1. Base Fees make up for non-revenue producing water;
  2. Non-revenue water consumption is due to aging infrastructure (old meters and leaking pipes). Old meter do not capture (measure low flow).
  3. 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.
  4. 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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