ABSTRACT
As was discussed in Chapter 6, the primary goal of every utility’s rate-setting process is the equitable recovery of revenue that is sufficient to fund the annual operating requirements of the system. This objective cannot be achieved without a comprehensive process to identify the revenue requirements, or expenditures, needed to operate, maintain, rehabilitate, upgrade, and expand a water or wastewater system. Determination of revenue requirements is the critical step before allocation of the costs as part of the comprehensive cost-of-service analysis discussed in Chapter 9.
