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The following is a Q/A with one of our blog readers: Question: Jason, If we were to have debt for an expansion at the treatment plant, would we use the value of the expansion plus the total value of the debt in our SIF [impact fee/system development fee] calculation? Or would we do something different? [...]
Utility managers should understand that you only get one chance to charge new customers connecting to your system for the capital costs of providing them the capacity they need for service. Connection charges (aka. system development fees, impact fees, tap fees, capacity charges, etc.) are the right way to ensure intergenerational equity between existing customers [...]