Arkansas Public Service Commission

FREQUENTLY ASKED QUESTIONS - WATER

INDEX:

What is the customer charge?

The customer charge is a flat charge applied each month regardless of the amount of natural gas used. The charge is designed to recover the cost of such items as customer accounting, mailing, billing and metering.

What is the distribution or delivery rate?

The distribution or delivery rate is based on utility operating expenses, including depreciation and income taxes, plus a return on the utility’s assets used in providing utility service and is intended to compensate the utility for the cost of delivering water through their pipeline system to end-use customers.

What is the usage charge?

The usage charge is the per unit rate for water sold to customers.

What is the water availability charge?

The water availability charge recovers the costs incurred by the utility for facilities that are readily available to provide water service to customers.

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Revised: Tuesday, May 21, 2013