Seasonal Rate Structure
A seasonal rate structure has a unit rate (cost per gallon) that varies based on the time of year. This type of rate structure is intended to encourage seasonal water conservation, and reflects the fact that meeting peak demands costs more during the summer.
Seasonal rates are common for natural gas and electric utilities, and their use is growing in water utilities.
If seasonal rates are effective in encouraging peak season conservation, in the long-run they can lead to less expensive rates for all customers by reducing the amount of treatment capacity the utility must provide.