scope:

Preface

In 1954, AWWA published the report Determination of Water Rate Schedules, which later was issued as the fi rst AWWA manual on water rates. Since then, AWWA Manual M1, Water Rates, has been updated several times, most recently in 2012. The fi fth edition, titled Principles of Water Rates, Fees, and Charges, consolidated several previous publications into what has been referred to as the M1 Super Manual. For a more complete history of AWWA's rate manual publications, see "A Brief History of Water Rates Manuals and Publications-The New England Water Works' Involvement" in the December 2013 edition of the NEWWA Journal.

The issues associated with water rates and charges have continued to evolve, and this update of M1, the seventh edition, is a refl ection of that evolution. For example, this edition makes current the numeric examples used throughout the manual, consolidates chapters where appropriate, and includes new material refl ective of changes in the industry (e.g., chapter III.3, "Emerging Trends"). In the future, the AWWA Rates and Charges Committ ee will continue to update this manual as new issues and questions arise.

As with the other manuals prepared by the Rates and Charges Committ ee and AWWA in general, this manual will not prescribe a solution. Rather, it is intended to provide guidance and advice. The examples presented are used only to demonstrate the generally accepted methodologies discussed in this manual. The underlying data and assumptions are not endorsed or recommended either by AWWA or the Rates and Charges Committ ee for use elsewhere. The purpose of this manual is to describe and present issues associated with developing water rates, fees, and charges; to enumerate the advantages and disadvantages of various alternatives; and to provide information to help users determine water rates, fees, and charges that are most relevant to a particular situation.