We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Pricing: Cost of Service Versus Value of Water.
- Authors
LaFrance, David B.
- Abstract
The article discusses the pricing of water services and the debate between cost-of-service rates and value-based rates. While water is a vital resource, pricing it solely based on its value would make it unaffordable for many people. The American Water Works Association (AWWA) supports cost-of-service rates, which aim to recover the costs of providing water service from the customers responsible for those costs. However, the article highlights that approximately one in four utilities struggle to cover the full cost of providing water service. The AWWA's Water 2050 program emphasizes the importance of establishing pricing models that cover all costs and considers factors such as climate impacts and infrastructure needs. The article concludes that setting the price of water is a complex task, but cost-of-service rates are the best option for long-term financial sustainability. The affordability of water is also a challenge that the water sector needs to address, and the AWWA is advocating for a federal low-income water assistance program.
- Subjects
VALUE (Economics); PRICES; COST; BUSINESS partnerships; CIRCULAR economy
- Publication
Journal: American Water Works Association, 2024, Vol 116, Issue 6, p112
- ISSN
0003-150X
- Publication type
Article
- DOI
10.1002/awwa.2309