A model for constrained peak-load water and wastewater pricing and capacity planning

Abstract

This article contains an application of peak-load pricing rules to public water services. The model presents a standardwater distribution system and a separate wastewater collection and treatment system. Technical and financial constraints are considered. The optimization process provides peak-load prices for drinking water and sewerage services. These prices reflect efficiently the costs of systems constraints and the real value of water resources scarcity. They provide important guidance in the design of efficient water rates and in the development of different water utilities planning strategies. New technologies in water metering (telemetry) should permit applying this model. © 1999 Taylor & Francis Group, LLC.