AWWA JAW6630

Descriptions of five major types of water rate schedules are presented and a nation-wide sample of rate schedules is analyzed to measure the effect of these water pricing policies on the marginal price of water. This value is found to be significantly lower than the average price of water, which is often incorrectly used to evaluate home water conservation device investments. The types of schedules discussed include fixed charge per period, uniform rate per unit, varying rate per unit, peak load pricing, and mixed. Price elasticity, block and flat rates, and the need to base savings estimates on local rather than national rate schedules are covered. Includes 14 references, tables.