Great question! The Variable Production Cost (VPC) is the cost related to your real losses or physical leaks in your systems. It is comprised of the costs to produce and supply the next unit of water (e.g.,

dollars per million gallons). This cost is determined by calculating the summed

unit costs for ground and surface water treatment and all power used for pumping

from the source to the customer. It may also include other miscellaneous unit costs

(such as residuals disposal costs) that apply to the production of drinking water. It

should also include the unit cost of bulk water purchased (Imported Water volume) if

applicable.