Are small users subsidizing large users?
The City of Galesburg has a declining block water rate system; as more water is consumed the cost per unit of water decreases. This system favors the large volume user of water. However, since 2002 the rate structure has been modified each year to lessen the rate reduction in the higher volume classes. In 2001 there were four rates for water consumption, the low volume user paid $1.58 for each unit of water consumed, and the largest volume users paid the same rate for the first units of water but paid $0.65 for each unit of water consumed beyond 532 units. In 2010 the rate structure has been reduced to only two rates, the low volume user currently pays $1.62 for each unit of water consumed, the largest volume users pay the same rate for the first units of water and pay $1.16 for each unit of water consumed beyond 132 units.
