ABSTRACT
The purpose of this chapter is to set the stage for the next section of the book that provides a detailed description of the rate-setting and pricing process for water and wastewater utilities. Specifically, this chapter provides some general information about the challenges facing most government-owned utilities operated as separate enterprise funds. The next two paragraphs provide a description of the rate-setting process organized into five basic steps. The first step, defining and prioritizing rate and pricing objectives, is discussed in some detail, while the remaining steps are described at a higher level and are then covered in more detail in the following chapters. Finally, this chapter also provides a description of the case study used to demonstrate the rate-setting process in the following chapters.
