Wednesday, October 7, 2015

Recovering Fixed Costs with Fixed Revenue - The Woes of Water

The issue of declining revenue in an operating environment of mainly fixed costs is critical - - but another approach could be the utilization of variable pricing during droughts.  Maintain a low block rate for basic water needs with limited restrictions on water consumption combined with escalating rates for upper end users seems a better way to both encourage conservation and protect revenue streams.


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