Water Rates, Fees, and the Legal Environment, Second Edition

This book provides guidance to utilities that are involved in or may face legal challenges to its rates and fees. It explains key legal concepts encountered in water ratemaking with citations to relevant court cases, offers guidance in preparing for litigation or alternative dispute resolution, and describes successful litigation strategies that have been used by water utilities. The second edition adds a substantial discussion on the subject of Rate Equity and the application of interclass, intraclass, and intergenerational equity goals in water rate designs. The new material was prompted by the addition of California’s Assembly Bill 2882 to the provisions of Proposition 218. Water conservation rates are subject to an actual cost nexus for each element or tier of the water rate structure. The recent addition of intraclass equity, as now required by California's constitution is also highlighted in a new Chapter 9. Detailed recommendations to meet the new water rate requirements are provided at the chapter’s conclusions.