Impacts of Demand Reduction on Water Utilities

Impacts of Demand Reduction on Water Utilities

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The primary purpose of this report is to provide information and to describe techniques that will help utilities and others determine the impacts of reduced demand on water utilities. The remainder of the report is organized as follows: Chapter 2, qMethods and Materialsq, describes the case-study format and the methodology used to collect the data; Chapter 3, qGeneral Concepts, q provides an overview of the significant economic and financial analysis concepts used to categorize and analyze the data; Chapter 4, qProfiles of Participating Agencies, q describes the participating agencies, including general profiles of each; Chapter 5, qOperating Cost Impacts, q details the analytical framework and results for short-term operating costs; Chapter 6, qRevenue Impacts, q illustrates how water utility revenues and rates are affected by reduced demand and potential reactions to rate adjustments; Chapter 7, qLong-Term Capital Savings, q describes potential savings from capital deferrals or avoidance resulting from demand reduction; Chapter 8, qExternal Impacts, q provides an overview of the impacts that may occur outside of water utilities as the demand for water decreases; Chapter 9, qConclusions, q looks at all the impacts and how the results of this study can be used by utilities.This chapter explains those fundamental concepts, including variable costs, fixed costs, marginal cost, rate structures, price ... Though the cost of debt service does change, the cause of the change is not the volume of water produced; therefore, the cost is classified as a fixed cost. ... in both treatment and distribution; energy costs associated with pumping and treatment processes; sludge disposal costs;anbsp;...

Title:Impacts of Demand Reduction on Water Utilities
Author: Daniel B. Bishop, Jack A. Weber
Publisher:American Water Works Association - 1996

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