All water utilities have base fees which cover fixed costs, and volumetric rates which cover operating costs. Base fees are billed regardless of the amount of water consumed. PUA base fees cover principal and interest payments on debt. Debt is issued to fund the purchase of the system from LCRA and our capital improvement program (CIP), which provides for future growth of the system. Volumetric rates cover such costs as electricity, chemicals, maintenance, and personnel. The PUA is required to meet operating cash reserve requirements and debt service coverage per Board policy and Bond covenants, respectively.
