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Rate Making Principles <br />® Equity <br />® Revenue adequacy <br />® Economic efficiency <br />® Administrative simplicity <br />■ Compliance with legal constraints <br />Components of Existing Water Rate <br />Structure <br />■ Billing charge (fixed charge per account) <br />® Base facilities charge (fixed charge per ERU) <br />® Volume charge (charges per thousand gallons) <br />® Excess volume surcharge (charges per thousand <br />gallons) <br />Recovery of Costs <br />• Meter Reading <br />• Billing <br />Fixed Costs <br />Variable Costs <br />• Related <br />Billing Base Volume Excess <br />Charge Facilities Charge Volume <br />Charge Surchara <br />