Wholesale Rate Utility (Spreadsheet)

    The Wholesale Rate Utility was developed by Brents Dickenson, P.E., TACWQ, at Western Kentucky University for the Water and Wastewater Laboratory Analysis DNA Cloning and Sequencing Operational Troubleshooting Specialized Training Mapping and Modeling Sampling and Monitoring Applications Development Proof-of-Concept and Technology Verification The CWRS is organized into three divisions - The Water Analysis, Training, Education and Research Services laboratory consortium, providing state-of-the-art water, wastewater and microbiological analytical services; the Environmental Informatics and Information Technology division, specializing in expert systems technology and environmental software applications development; and the Field Operations and Outreach division, providing in-field technology verification, mapping and monitoring services.">Center for Water Resource Studies. The wholesale water rate is that rate that one utility (the seller) charges another utility (the purchaser) for water service. The purchaser would ideally pay for their cost of service. When selling water to another utility, the wholesale rate or “water for resale” rate should recover all costs caused by that utility. Publicly owned utility rates are based on the “cash needs” of the utility as outlined and explained in the 5th addition of AWWA, M1, Manual of Water Supply Practice, Principles of Water Rates, Fees, and Charges. The idea is to establish a rate that will generate the revenue needed to pay for “cash needs” as they fall due. The “cash needs” or the revenue requirements of a publicly owned utility include debt service costs, operation and maintenance, capitalized items purchased with current revenue and, in some jurisdictions, the depreciated value of bonded and contributed property in “joint use”. The purpose of this paper is to discuss the revenue required and how the revenue required may be allocated fairly between the seller and the purchaser.  The most widely used wholesale rate structure is the “uniform rate”, and is the method discussed here. Other methods used include seasonal, declining rate, and the demand rate that are less common today because of several factors that will not be discussed.