MIL-HDBK-1165
ITEM
TOTAL MARGINAL COST
COST
Cost to operate wells (for local
X
production wells)
Commodity cost (if purchased from
X
X
utility company - e.g., the "water
bill")
Cost to treat water (chlorine,
X
X
electricity, etc.)
Cost to pump/distribute water
X
X
Labor costs to operate treatment plants
X
X
Labor and maintenance to maintain
distribution system
Sewage treatment costs
X
X (Note 1)
Disposal costs
X
X
Permitting fees
X
Water quality testing
X
NOTE 1: Sewage treatment costs can only be added to your
marginal cost if the water conservation measure will reduce the
total flow to the sewage treatment plant. Examples:
a) a conservation measure reducing the amount of water
used for irrigation.
b) a conservation measure to install low flow plumbing
fixtures.
Sewage costs could be considered as part of your marginal costs
in example B above, but not in example A because example B
reduces the overall flow to the sewage treatment plant while
example A does not.
Figure 7
Marginal Costs and Total Costs of Water
12
Previous Page
