100 COMPARISON OF SERVICE CHARGE, ETC. 



tained by dividing the $321.46 by the total annual quantity 

 for the twenty services, 110,738 gallons, and amounts to 29.03 

 cents per 1000 gallons. The exact figure is. used so that the 

 results will check. 



A calculation is then made for a rate with an $8 minimum. 

 Preliminary trial shows that the minimum applies to the first 

 nine terms, and deducting the revenue resulting from this mini- 

 mum from $321.46 and dividing the remainder by the aggregate 

 quantity for the remaining eleven terms gives a required price 

 of 25.87 cents per 1000 gallons. Applying this to the remain- 

 ing terms the process is checked and the revenue is found to 

 be the same as in the other cases. 



In the next column the rates are calculated which if used 

 in the Committee's Alternate Procedure would produce ex- 

 actly the same total revenue. The calculation in this case is a 

 little more complicated and is reached by two or three approxi- 

 mations. It is found that the rates will be 29.04 cents per 1000 

 gallons for the first 60,000 gallons and 20.71 cents for all larger 

 quantities. 



These rates then would produce identical total revenues for 

 all domestic consumers for the assumed quantities. As the 

 quantities were selected somewhat carefully to represent a normal 

 plant, the comparative figures should give a very good idea of 

 what the comparative rates would need to be used to give equal 

 revenues in any case. 



The rates that produce equal revenues are as follows: 



Uniform rate without service charge or minimum, 29.03 

 cents per 1000 gallons. 



Uniform rate with service charge, $5 and 20 cents per 1000 

 gallons. 



Uniform rate with rninimuni rate, $8 and 25.85 cents per 1000 

 gallons. 



Committee's alternate procedure of minimum rate and slid- 

 ing scale, $8 and 29.04 cents for the first 60,000 gallons, and 

 20.71 cents for larger quantities. 



The twenty quantities and the annual bills by the four 

 methods are as follows: 



