The flat-rate billing structure is in the best interest of all of our customers, primarily for the following two reasons:
- Lowest Total Cost of Service to All Customers. The District strives to keep the total costs to all customers as low as possible. The flat-rate billing approach is much more efficient to administer which translates into lower operating costs. Under a “consumptive” based billing framework the total dollars billed to all customers would be higher.
- Flat-Rate Structure Best Fits the Actual Cost of Service. When we look at our actual costs to provide service (e.g. operating, capital, and debt service) the majority are fixed costs and are not directly influenced by the amount of use of any one individual(s). The variable costs that are directly influenced by the flow in the system (e.g. electricity for pump station operations) are a very small component of the overall costs of operating the utility.
