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The Value of Simple Rates Cannot be Overstated

September 4, 2009

Intricate rate designs can be helpful in reaching certain community goals, but elected officials in particular should never underestimate the value of simplicity. In this example from Frankfort, KY (http://bit.ly/11h0OB) we see how customers can become easily confused with their utility bills and how that confusion can increase when multiple utilities are billed together. In this case too, each of the utilities implemented rate increases at the same time, further compounding the issue. Simplicity is not only valuable, but it is also many times the best rate structure alternative as discussed in a presentation we made at the American Water Works Association earlier this year.

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