Agenda - Environmental Policy Board - 11/21/2016

Home

Local Water Supply Plan Template July 8, 2016 Customer Conservation Billing Strategies Conservation Neutral Non-Conserving Billing Category in Use* Billing Strategies in Use** Strategies in Use *** ❑X Water bills reported in gallons ❑ Individualized goal rates ❑ Excess use rates ❑ Drought surcharge ❑ Use water bill to provide comparisons ❑ Service charge not based on water volume ❑ Other(describe) ❑ Other * Rate Structures components that may promote water conservation: • Monthly billing: is encouraged to help people see their water usage so they can consider changing behavior. • Increasing block rates(also known as a tiered residential rate structure): Typically,these have at least three tiers: should have at least three tiers. o The first tier is for the winter average water use. o The second tier is the year-round average use,which is lower than typical summer use.This rate should be set to cover the full cost of service. o The third tier should be above the average annual use and should be priced high enough to encourage conservation,as should any higher tiers. For this to be effective,the difference in block rates should be significant. • Seasonal rate: higher rates in summer to reduce peak demands • Time of Use rates: lower rates for off peak water use • Bill water use in gallons: this allows customers to compare their use to average rates • Individualized goal rates:typically used for industry,business or other large water users to promote water conservation if they keep within agreed upon goals. Excess Use rates: if water use goes above an agreed upon amount this higher rate is charged • Drought surcharge: an extra fee is charged for guaranteed water use during drought • Use water bill to provide comparisons: simple graphics comparing individual use over time or compare individual use to others. • Service charge or base fee that does not include a water volume—a base charge or fee to cover universal city expenses that are not customer dependent and/or to provide minimal water at a lower rate(e.g.,an amount less than the average residential per capita demand for the water supplier for the last 5 years) • Emergency rates-A community may have a separate conservation rate that only goes into effect when the community or governor declares a drought emergency. These higher rates can help to protect the city budgets during times of significantly less water usage. **Conservation Neutral** • Uniform rate: rate per unit used is the same regardless of the volume used • Odd/even day watering—This approach reduces peak demand on a daily basis for system operation, but it does not reduce overall water use. *** Non-Conserving*** • Service charge or base fee with water volume:an amount of water larger than the average residential per capita demand for the water supplier for the last 5 years • Declining block rate:the rate per unit used decreases as water use increases. • Flat rate: one fee regardless of how much water is used (usually unmetered). 44