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Local Water Supply Plan Template July 8, 2016 <br /> Table 27. Rate structures for each customer category (Select all that apply and add additional <br /> rows as needed) <br /> Customer Conservation Billing Strategies Conservation Neutral Non-Conserving Billing <br /> Category in Use* Billing Strategies in Use** Strategies in Use*** <br /> Residential ❑ Monthly billing ❑ Uniform ❑ Service charge based on water <br /> ❑X Increasing block rates ❑ Odd/even day watering volume <br /> (volume tiered rates) ❑ Declining block <br /> ❑ Seasonal rates ❑ Flat <br /> ❑ Time of use rates ❑ Other(describe) <br /> ❑X Water bills reported in <br /> gallons <br /> ❑ Individualized goal rates <br /> © Excess use rates <br /> ❑ Drought surcharge <br /> ❑ Use water bill to provide <br /> comparisons <br /> ❑ Service charge not based on <br /> water volume <br /> ❑ Other(describe) <br /> Commercial/ ❑x Monthly billing ❑ Uniform ❑ Service charge based on water <br /> Industrial/ ❑X Increasing block rates volume <br /> Institutional (volume tiered rates) ❑ Declining block <br /> ❑ Seasonal rates ❑ Flat <br /> ❑ Time of use rates ❑ Other(describe) <br /> ❑X Water bills reported in <br /> gallons <br /> ❑ Individualized goal rates <br /> ❑ Excess use rates <br /> ❑ Drought surcharge <br /> ❑ Use water bill to provide <br /> comparisons <br /> ❑ Service charge not based on <br /> water volume <br /> ❑ Other(describe) <br /> ❑ Other <br /> * Rate Structures components that may promote water conservation: <br /> • Monthly billing: is encouraged to help people see their water usage so they can consider changing <br /> behavior. <br /> • Increasing block rates(also known as a tiered residential rate structure): Typically,these have at least <br /> three tiers: should have at least three tiers. <br /> o The first tier is for the winter average water use. <br /> o The second tier is the year-round average use,which is lower than typical summer use.This rate <br /> should be set to cover the full cost of service. <br /> o The third tier should be above the average annual use and should be priced high enough to <br /> encourage conservation,as should any higher tiers. For this to be effective,the difference in <br /> block rates should be significant. <br /> • Seasonal rate: higher rates in summer to reduce peak demands <br /> • Time of Use rates: lower rates for off peak water use <br /> • Bill water use in gallons: this allows customers to compare their use to average rates <br /> 44 <br /> City of Ramsey December 8, 2016 <br />