There are so many elements that go into the establishment of the varuious rates, and Mr. Pettricia would have us believe that it is a cut and dry issue. Most condos on Marco are using non-potable, reclaimed wastewater for irrigation. Do not know how that impacts the irrigation usage referenced early in the LTE. Most rates are based on cost of service and capacity calculations. It costs the same to "deliver" 15,000 gallons as it does 5,000 gallons (this is delivery, not capacity charges). The difference obviously is the cost of product. How much of the rate is based on capacity of the plants and the infrastructure ?? If the 5,000 gallon user all of a sudden uses 15,000 gallons, the ability to deliver that demand must exist both in the Treatment Plant and in the pipelines. That capacity determination is based on avaerages and historical data, not on zero or "low" water usage. The capacity of a Plant or Plants is a major factor in the development of Capital and Maintenance costs. These costs are amortized by a Base Charge and in the cost of the water. I certainly do not know how the numbers crunch, but it would appear that neither does the author. As is always the case, numbers can be made to argue both sides and can be expressed to support any position. This is certainly exemplified in the LTE above. When I worked for the largest water supplier in the World, we had a discounted rate for Groundwater Replenishment. We found agencies that were buying water at this rate, pumping it into the ground, and immediately pumping it out and selling it to their customers at normal rates. Everyone else suffered higher rates as a result. They were able to demonstrate the numbers by manipulation as was done above. Obviously, when this practice was discovered, it was stopped. The point is that it is difficult to establish "perfect rates" that work for everyone. In situations such as this, there is never a 100% "equitable" or "fair" solution. We can only expect our representatives to do the best they can and it appears that this was done in this case. Can the rates be changed or adjusted based on actual revenue ?? Certainly, and they probably will be as we see actual numbers over a period of time. Ed Issler
Share your thoughts
Comments are the sole responsibility of the person posting them. You agree not to post comments that are off topic, defamatory, obscene, abusive, threatening or an invasion of privacy. Violators may be banned. Click here for our full user agreement.
lauralbi1 writes:
There are so many elements that go into the establishment of the varuious rates, and Mr. Pettricia would have us believe that it is a cut and dry issue. Most condos on Marco are using non-potable, reclaimed wastewater for irrigation. Do not know how that impacts the irrigation usage referenced early in the LTE. Most rates are based on cost of service and capacity calculations. It costs the same to "deliver" 15,000 gallons as it does 5,000 gallons (this is delivery, not capacity charges). The difference obviously is the cost of product. How much of the rate is based on capacity of the plants and the infrastructure ?? If the 5,000 gallon user all of a sudden uses 15,000 gallons, the ability to deliver that demand must exist both in the Treatment Plant and in the pipelines. That capacity determination is based on avaerages and historical data, not on zero or "low" water usage. The capacity of a Plant or Plants is a major factor in the development of Capital and Maintenance costs. These costs are amortized by a Base Charge and in the cost of the water.
I certainly do not know how the numbers crunch, but it would appear that neither does the author.
As is always the case, numbers can be made to argue both sides and can be expressed to support any position. This is certainly exemplified in the LTE above.
When I worked for the largest water supplier in the World, we had a discounted rate for Groundwater Replenishment. We found agencies that were buying water at this rate, pumping it into the ground, and immediately pumping it out and selling it to their customers at normal rates. Everyone else suffered higher rates as a result. They were able to demonstrate the numbers by manipulation as was done above. Obviously, when this practice was discovered, it was stopped. The point is that it is difficult to establish "perfect rates" that work for everyone.
In situations such as this, there is never a 100% "equitable" or "fair" solution. We can only expect our representatives to do the best they can and it appears that this was done in this case.
Can the rates be changed or adjusted based on actual revenue ?? Certainly, and they probably will be as we see actual numbers over a period of time.
Ed Issler
Share your thoughts
Comments are the sole responsibility of the person posting them. You agree not to post comments that are off topic, defamatory, obscene, abusive, threatening or an invasion of privacy. Violators may be banned. Click here for our full user agreement.