Why are fixed rates high?
ACWWA’s water and sewer rates both include a fixed monthly charge and a volume charge that varies with metered use. From a cost standpoint, more than 75% of ACWWA’s costs are fixed. In other words, a major portion of costs do not vary with water demand. Further, a significant part of these costs are for repayment of bonds–funds borrowed by ACWWA to acquire surface water supplies and build treatment facilities for its customers. These repayment obligations must be met and represent a large portion of the fixed charges that appear on monthly water bills.
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