Lease and affermage contracts

It is possible to structure compensation incentives into a lease that encourages providing service to LIGs within the served area. However, extension of the system into unserved areas remains with the public sector (or as negotiated) and may not be a priority for either public or private sector. If the low-income areas fall within the existing service area, the operator may be motivated to provide service for the sake of increasing tariff revenue or remuneration. However, these areas may be a lesser priority than other consumer groups within the service area.