10 Steps: To Developing Utility Rates

Capital Planning and Asset Management

10 Steps: To Developing Utility Rates

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Utilities such as water, wastewater, stormwater, and electricity can struggle to develop rate structures that fund ongoing service while not unduly burdening customers. GFOA developed the following steps based on the methodology in the American Water Works Association (AWWA) publication, M1 Principles of Water Rates, Fees and Charges. The AWWA is one of GFOA’s valued partners on a number of initiatives. And while the principles were developed for water-related utilities, they can be applied to any utility service type.

Publication Date: April 2026

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