Financing and Charges for Wastewater Systems (MOP 27), 5th ed., provides an overview of current industry practices that should be considered for financing and establishing rates and charges for wastewater collection and treatment systems. In addition, this Manual of Practice reflects and is responsive to changes in the industry over the last decade that have occasioned a heightened awareness about wastewater utility financial management and the equitable distribution of cost responsibilities across customer groups or classes. These changes, including tightening environmental regulation and replacement of aging infrastructure, have resulted in a pronounced increase in the cost of wastewater services. At the same time, the portion of costs paid through federal and state assistance programs have declined, challenging the affordability of this vital service. In this context, guidance on wastewater rate-setting practices, and particularly the distribution of costs across groups, is of critical importance.
Table of Contents
Chapter 1: Introduction
Chapter 2: Institutional Framework for Wastewater Services
Chapter 3: Financial Management and Accounting for Wastewater Systems
Chapter 4: Financing Capital Improvements
Chapter 5: Determination of Revenue Requirements
Chapter 6: Allocating Costs of Services to Cost-Causative Components
Chapter 7: Distribution of Costs-of-Service to Customer Classes
Chapter 8: Development and Design of a Schedule of Rates and Charges
Chapter 9: Wet Weather Financing and Cost Recovery
Chapter 10: System Development Charges
Chapter 11: Planning and Rate Study Implementation
Chapter 12: Affordability
Chapter 13: Rates for Reuse or Reclaimed Water
Chapter 14: Emerging Financing Alternatives
Appendix: Utility-Basis Revenue Requirements and Cost
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