Legal Definitions - standby charge

A standby charge is a fee or levy imposed on property owners for the *readiness* or *availability* of a specific service, even if that service is not actively used. It is a charge for the capacity or infrastructure being in place, ensuring the service *could* be provided if needed. These charges often help fund the maintenance and operation of the systems that make the service possible.

• Example 1: Rural Water Connection Availability

  Imagine a property developer who purchases a large plot of land outside a city, intending to build homes in the future. The local water utility extends water mains and connection points to the boundary of this undeveloped property. Even though no houses are built yet and no water is being consumed, the developer might receive an annual bill from the water utility for these connection points.

  This illustrates a standby charge because the fee is for the *availability* of the water service infrastructure (the mains and potential connection points), not for the actual consumption of water. The utility has invested in making the service ready for future use, and the charge helps cover the cost of maintaining that readiness.

• Example 2: Special Fire Protection District Levy

  Consider a homeowner whose property is located within a special fire protection district in a more remote area. While their property has never experienced a fire, they pay an annual assessment to the fire district, often calculated based on their property's value or acreage.

  This is a standby charge because the homeowner is paying for the *readiness* of fire services – the fire station, equipment, and trained personnel are available to respond if needed. The charge is not dependent on whether the service is actually utilized by that specific property, but rather on the fact that the service capacity is maintained for their benefit.

• Example 3: Agricultural Irrigation System Maintenance

  A farmer owns 200 acres of land within an agricultural irrigation district. In a particular year, due to exceptionally heavy rainfall, the farmer decides not to draw any water from the district's irrigation canals for their crops. Despite not using the water, the farmer still receives an annual bill from the irrigation district, calculated per acre, for the maintenance of the canals, pumps, and overall water delivery system.

  This demonstrates a standby charge because the farmer is paying for the *capacity* and *infrastructure* of the irrigation system to be maintained and ready to deliver water, even though they chose not to utilize it that year. The charge ensures the system remains available for their potential future use and for the benefit of all properties within the district.