1.Levelized cost account for the time value of money andthe beneficial water supply that is provided and isexpressed as a unit cost (dollars per million gallons).2.Beneficial water supply is the amount of water that isneeded as opposed to just the capacity of supply thatcan be produced.3.Useful in comparing conservation options with supplyoptions, as one reduces demand the increases supply.4.Levelized costs are a proxy for potential rate impacts tocustomers.
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