Water Rate Design

Get an estimate
Download our paper

Make Your Water Rates Work for You

If you’ve done good financial planning and fully understand the costs of service, then you are 80%  of the way to a great water rate or sewer rate.  Still, the difference between a well-designed rate and a poor one can mean the difference between financial success and failure.  Your water and sewer rates should, first and foremost, recover the money you need to meet your financial obligations, and a good rate design can also help you reach other goals important for your community.

With the costs of water services steadily increasing at rates that outstrip inflation, many communities have increased their conservation efforts.  Water rates are one of the tools that can be used to reinforce water conservation goals, but if not designed correctly these conservation-oriented rates can expose the utility to increased financial risk and may even appear to your customers as inequitable.  The bottom line is that if you want water rates that encourage conservation, you need to take the time to make sure those rates are designed correctly.  StepWise has prepared dozens of water rate structures over the years.  We use predictive modeling and advanced statistical simulation techniques that allow us to show you how your new water rate will perform BEFORE you adopt it.  With our advanced techniques, our consultants can give you estimates of revenues, water savings, and bill impacts each within a statistically validated  range.