HOW TO HANDLE SERVICE CHARGES 33 



average addition that is made by service charges. In doing 

 this it is assumed that all domestic services (less than 820 gallons 

 daily) are served by f meters. The service charge for a f-inch 

 meter will be used in computing rates for all these quantities. It 

 is also assumed that larger meters will be used for larger quan- 

 tities of sizes suited reasonably to the drafts of the several takers. 

 If the service charge for a f-meter is $5.00 per annum, the 

 additions to be made to the base rate will be as follows: 



10,000 gallons per annum at 50 cents per 1600 gallons 



20,000 25 



50,000 10 



100,000 5 



300,000 1.67 



These (and additional intermediate values) are then added 

 to the base rate and plotted, the line so drawn stopping at the 

 300,000 gallons per annum heavy line, which is the limit of the 

 domestic rate classification. 



For all larger quantities the service charges will increase 

 with the meter sizes approximately in proportion to the quanti- 

 ties of water drawn (assuming always that the meter is reasonably 

 adapted in size to its work) and the general average payment for 

 service charges for all intermediate and manufacturing rates is 

 ascertained. If full statistics are available proceed as follows: 



Find, first, the total annual quantity of water sold through 

 all meters f inch in size and over. 



Find next the total service charges at the proposed rates for 

 those meters. 



From these two figures is found by division the average 

 amount per 1000 gallons that the service charges increase the 

 average cost to the taker. 



In making this calculation, it is suggested that charges 

 for larger meters on services installed solely or mainly for fire 

 service be omitted. 



If full records are not available, then an estimate may be 

 made based on an estimated average or normal sales from meters 

 of various sizes. 



