Full Cost Pricing

March 19, 2019

A recent post from EFCN (Environmental Finance Center Network) on “The Perils of Comparing Water Rates” stated,

“Ideally, water rates reflect the full cost of providing water service today and into the future.  That includes covering the full suite of operating and maintenance costs such as salaries, taxes, insurance, utilities, chemicals, lab fees, contracted services, supplier fees, repairs, and depreciation.  The full cost also includes debt service payments, capital improvements, and contributions to reserve funds.”

For a more in-depth look at the full cost of providing water, watch this short informational clip on full cost pricing produced by EFCN.