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Consultant says capacity‑based meter charges are more equitable than class rates
Summary
Consultant Andy told Boardman council that industry best practice ties fixed charges to meter capacity and uses a single volumetric rate; he said the current system with separate residential/commercial/school classes is outdated and recommended analysis of a capacity‑based approach.
At the Boardman workshop, consultant Andy explained why many utilities now assign fixed charges by meter capacity rather than by customer class. He told councilors that the cost to produce water does not differ by customer type and that “the meter size ultimately determines the capacity” and therefore should determine a larger portion of the fixed charge.
Andy walked through the technical logic: smaller residential meters (0.75‑inch) have a lower capacity than larger commercial or industrial meters and a capacity multiplier can be applied so fixed charges better reflect the infrastructure required. He cautioned that converting to a capacity model can produce significant fixed charges for large meters (he gave an example moving an 8‑inch service from $21.53 toward an $885 figure before phasing), so any change typically is phased in. “It’s not like adding $20 — it’s adding a significant number,” he said.
The consultant recommended building a formula and running account‑level data to understand distributional outcomes before proposing changes. Council members asked about possible protections for schools and low‑income ratepayers; Andy said those are policy choices to be considered alongside the technical model.
