For water delivered, in addition to the service charge, there shall be a charge for all water delivered, as follows: per 1000 gallons For the first 25,000 gallons per month $- per 1000 gallons Where the fourth or special rate is used, the schedule will be as follows: For water delivered, in addition to the service charge, there shall be a charge for all water delivered, as follows: per 100 cu. ft. For the first 3,300 cu. ft. per month $For the next 30,000 cu. ft. per month $For all over 33,300 cu. ft. per month $Where the fourth or special rate is used, the schedule will be as follows: per 100 cu. ft. For the first 3,300 cu. ft. per month $ per 100 cu. ft. with the standard of the New England Water Works Association, adopted in November, 1916.2 The three slides are for convenience called, Domestic, Intermediate, and Wholesale or Manufacturing Rate. The quantities under each rate may be summarized as follows: The quantity of water covered by the first or domestic rate will include substantially all water used by private residences, and also much of the water used by small commercial and industrial establishments. The forms for the schedules, as adopted, are shown in table 27. They are given in alternate forms, according to whether gallons or cubic feet are used. The monthly unit of time is used as an example. Schedules based on quarterly, semi-annual or annual periods, will be in similar form. When the rates to be used in the above form of schedule are properly selected, it constitutes a fair and equitable rate structure under which each consumer pays as nearly as can be calculated, his proportionate share of the cost of the service which he receives. It eliminates the discriminatory features of the present generally used minimum type of schedule. Slides in the rate schedule The standard form of schedule embraces three slides, with a fourth and lower rate for large manufacturers, if deemed desirable. L 2 Jour. N. E. Water Works Assn., vol. 30, September, 1916, 361. In general, a three slide rate fulfills all requirements. A multiplicity of slides is cumbersome, and serves no useful purpose. Many existing schedules contain larger numbers ranging up to 15 or more. A single rate to all consumers is of course the simplest form of rate schedule. A single rate with proper service charge may be the most equitable where the cost of the mains in the streets, or the major part of it, is assessed against abutters. In other cases, which are in a great majority, the water works pays for the mains in the streets and must earn a return on this cost. Twenty miles, more or less, of 8 inch pipe are required to reach one thousand domestic consumers, while a single factory may take as much water through a single service and meter. The actual cost per thousand gallons is greater to the domestic takers and it is only fair that rates should be made that recognize this difference in cost. The block or slide. rate is in general use in American communities, not only in water works, but in gas and electric utilities. It is a recognition of the wholesale principle, and encourages the use of water in industries. Most of the criticism against the sliding scale has been because of excessive slides. Some existing schedules permit a large user to obtain water for one-eighth or one-tenth of the price per 1000 gallons paid by the small user. In its report recommending the standard schedule, the committee expressed the opinion that the ratio between the first and third rate should be limited to about 2 to 1, and that where the fourth or special rate is used, the amount of slide between the first and fourth rates should not exceed the ratio of 3 to 1. It is further recommended that the second, or socalled intermediate rate in a three rate schedule be fixed at an amount midway between the first and last rates. Where water is expensive or hard to get, and the plant is working on a high load factor, the slide ratio should be lower than where water is abundant and a broader market for it needed. The form is becoming more generally recognized as a standard, and is being adopted by a substantial number of water utilities representing a large population. In table 28, a list is given of works which are operating under the standard form of schedule. It is recognized that this list is incomplete. It will be noted that many large works have adopted the standard schedule exactly as recommended. |