AWWA ACE91106

This is one of four papers based on the AWWA manual on alternative water rates. The author discusses seasonal water rates, which establish a higher price for water during a peak use season. Common seasonal rates are declining block, inverted block, and surcharge structures. Seasonal rate structures can help a utility to achieve conservation, accurate reflection of costs, or seasonal versus permanent customer equity. Factors to consider in implementing seasonal rates are variability of demand by season, variability of system facilities, risk of water shortages, relationship to the existing tariff, customer impacts, consequences of continuing the nonseasonal tariff, impact on revenue stability, and administrative issues. Following historical background information, the author describes how to establish a seasonal price differential, focusing on the three common types of seasonal rates and the advantages and disadvantages of each. Manual M34, Alternative Rates, is AWWA publication order number 30034.