Municipal Utilities: An Overview Of Rate Models, Sustainability And The Effects On Affordability

Abstract

Municipalities are faced with escalating costs, harder to find resources, and increasing regulatory restrictions in an effort to maintain public utilities.  To complicate this situation, communities must address a growing number of individuals who are unable to pay their utility bill.  This study is a review of several water utilities in Florida to determine how typical municipal utilities approaches affordability. Factors affecting utilities such as sustainability, rate models, and regulations are examined to the present methodology for an average municipality in addressing the increasing important issue of affordability.  This research is a continuation of a longitudinal study to determine how municipalities address increasing costs to maintain their utility while considering those in the community who are less fortunate and cannot continue to absorb the higher costs of water and wastewater.