Utility Marketing Representative Practice Exam 2025 – Complete All-in-One Guide for Exam Success!

The correct understanding of the percentage of water consumption charged at the first tier 'Base Charges' is essential for interpreting utility billing structures. In many water utility billing frameworks, the first tier—or base charge—represents the fundamental level of consumption that is billed at the lowest rate.

Typically, this tier is designed to promote water conservation and ensure that basic water needs are met at an affordable price. It is common for this tier to cover a high percentage of overall consumption, often around 95%. This approach allows utilities to subsidize essential usage while encouraging users to remain mindful of their water consumption as they move into higher tiers, where rates may increase significantly.

Thus, recognizing that 95% represents a significant portion of water consumption falling under these base charges makes this answer pertinent and reflective of standard utility practices in tiered billing systems. Understanding these structures helps consumers manage their usage and anticipate their bills accurately.