[Vision2020] Hawkins Water & Sewer Agreement: feedback from water dept

[Kenneth Marcy]

On Friday 15 February 2008 18:48, Paul Rumelhart wrote:
> Garrett Clevenger wrote:
<snip>
> > Since Moscow can't profit off of the water it sells to
> > Hawkins, I wonder how the city will justify charging a
> > "premium" price to Hawkins.  The others who pay twice
> > the rate are charged that to pay for extension of
> > services.  Since Hawkins is paying for those
> > extensions, it doesn't seem that the city would be
> > justified to charge twice the amount, let alone the 3
> > times that has been reported.

Generally speaking, this is the subject of public utility rate-making. 
Public utilities engineers can create various tariffs with different fixed 
and variable rate levies against, for example, industrial electricity 
customers.
 
> I was going to bring this up, too.  I can see raising the cost to cover 
> infrastructure enhancements needed, but how can you selectively charge 
> customers based on who they are?  That would open a whole can of worms 
> that would better remain closed.

Various physical differences in the peak load capacities, as well as the 
actual quantities of service provided, can provide bases for different rate 
tariffs to high-demand, high-usage customers.

> I don't know about the wisdom of selling services over the border, but 
> once you do you have to be fair.

Yes, equity is important. Perhaps researching with the Idaho Public 
Utilities Commission to see what alternative tariff schedules can entail, 
and the practical engineering calculations that support them, would be a 
useful and informative exercise.


Ken