4.3.2.b Density to Cost Ration Discussion

Provision of services to more customers with less actual infrastructure makes a more efficient utility service. This is displayed by a density to cost ratio. Each service ratio will be different depending on costs associated to the service but the effect on all utilities is the same. As a neighborhood increases in density more people will require a utility. With the customers living closer to each other, or in a single building, utilities may need to provide fewer feet of cable, pipes, or wires although it may be at a larger size. This reduction in footage of installed utility combined with the number of customers makes the cost of providing a utility lower at higher densities. For public entities the savings is a direct benefit to the public through better use of tax dollars, with private industries it affects their bottom line which makes a more profitable company and may affect their service rates.