AWWA ACE91105

This is one of four papers based on the AWWA manual on alternative water rates. The author discusses two types of rates: 1) life-line rates and low income discounts, and 2) increasing block rates. Life-line rates provide an initial volume of water, equal to the minimum sanitary requirements for residential customers, at below cost. Low income discounts offer a discount based on the regular water rates. The author discusses factors to be taken into consideration when establishing life-line rates or discounts (such as eligibility requirements, minimum sanitary requirements, who will pay for the subsidies, and so forth) as well as advantages (financial self- sufficiency of the program) and difficulties (administration) for this type of rate. The author presents calculations used in the manual for figuring a life-line rate. Increasing block rates incorporate a unit charge that increases with increasing use. Rationale, some discussion of its controversial nature, factors to consider in implementing the rate, and advantages and disadvantages are offered. Manual M34, Alternative Rates, is AWWA publication order number 30034.