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The City of Jackson provides water service to customers
outside the City limits. We currently charge these customers a higher rate
than City residents. We are now in the process of updating our water rates
and we need to ensure that the out-of-city rates are properly justified.
One key item in support of a rate differential is a rate of return on our
investment. I don't know how to determine this.
I would appreciate any information on how others justify a
reasonable additional charge to customers outside your jurisdiction,
particularly return on investment. If you have any studies, or
excerpts from studies you could provide, that would be great.
Thanks
Steve King
Accountant
City of Jackson
209-223-1646
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