Rate Structure

Background Information

        All customers within The McCandless Township Sanitary Authority (MTSA) service area are divided into two classes. These classes are residential customers and non-residential customers. Non-residential customers include all commercial, institutional and public customers. There are no industrial customers currently connected to the Authority's sewerage system. The purpose of this categorization of customers is to assure that all customers throughout the service area pay their fair share of sewerage system operating costs on an equivalent basis.

    When designing a suitable and effective rate structure, two major points must be considered. First, there are expenses related to the loading received at a treatment facility and that are considered variable. Secondly, there are also fixed expenses, which do not depend upon loading received at the treatment facility. Therefore, every year there must be guaranteed revenues to cover the fixed expenses as well as revenues to cover variable expenses related to system operations. The rate schedule must also treat every class of customer uniformly.

    All customers pay a Base Service Charge, which will meet the costs of administration and bonded debt. The two categories of Residential Customers and Non-Residential Customers each have a distinct User Charge based on water consumption to meet the costs of collection conveyance and treatment of sewage.

    All of the Authority's residential customers served by a private water supply are billed the User Charge based on the estimated average wastewater discharge of metered residential customers, along with the Base Service Charge.

    The Authority has been successful in revising its billing procedure to reduce billing and collection costs and to improve cash flow. Specifically, customers are billed once each quarter, and the authority has instituted a collection procedure for all delinquent accounts.

Rate Structure

Effective 01/01/2017

 

RESIDENTIAL CUSTOMERS
Each residential customer will receive a quarterly bill for public sewerage services based on the following rate schedule:

  1. Base Service Charge = $21.25 per quarter per dwelling unit.
  2. User Charge = $6.90 per 1,000 gallons of water consumed.
  3. Total Charge is sum of Base Service Charge and User Charge.

 

NON-RESIDENTIAL CUSTOMERS
Each non-residential customer will receive a quarterly bill for public sewerage service based on the following rate schedule:

  1. Base Service Charge = $21.25 per quarter per account.
  2. User Charge = $8.45 per 1,000 gallons of water consumed.
  3. Total Charge is sum of Base Service Charge and User Charge.

 

RESIDENTIAL CUSTOMERS WITH PRIVATE WATER SUPPLIES
Each residential customer will receive a monthly bill for public sewerage service based on the following rate schedule:

  1. Base Service Charge = $28.05 per month per account.