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A fixed fee reflects the cost of bringing water to your house, before you turn on the faucet. A fixed fee is charged to cover system costs that occur whether a customer buys one gallon or 1,000 gallons of water. Examples of fixed costs include debt service payments and investments in infrastructure (water and sewer pipes, valves, etc).
The fee is based upon the size of the meter. A larger meter increases the ability to make larger demands on the system, and therefore, costs more.
Sources of fixed fees include:
These fees are pass-through charges.
Commodity charges are per unit consumption charges based on meter readings. These charges apply to all meters.
Commodity charges per billing unit (750 gallons) have increased from $5.15 in 2018 to $5.19 in 2019.
Large user charges are per unit charges assessed on water meters 1.5 inches and larger. Large meters have the ability to put more stress/demand on the system. Large user charges are designed to spread the system cost more equitably.
Large user charges per billing unit (750 gallons) are $2.66, in addition to commodity charges.
It is less costly to maintain water and sewer pipes than to replace them. Much of the underground water and sewer system in Livonia is very old.
A car is a good example. An oil change is less costly than a new engine.
The ability to change meter size depends on the plumbing within a structure. You will need to have your situation assessed by a plumber to see if the desired change is possible.
View the 2019/2020 comparison (PDF) of small, medium, and high usage for Small Users with 5/8 to 1 Inch Water Meters.