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BMP 11 <br />CONSERVATION PRICING <br /> <br />Implementation <br /> <br />Implementation methods shall be at least as effective as eliminating nonconserving <br />pricing and adopting conserving pricing. For signatories supplying both water and sewer <br />service, this BMP applies to pricing of both water and sewer service. Signatories that <br />supply water but not sewer service shall make good faith efforts to work with sewer <br />agencies so that those sewer agencies adopt conservation pricing for sewer service. <br /> <br />a) Nonconservin_o pricine provides no incentives to customers to reduce use. Such <br /> pricing is characterized by one or more of the following components: rates in which <br /> the unit price decreases as the quantity used increases (declining block rates):rates <br /> that involve charging customers a fixed mount per billing cycle regardless of the <br /> quantity used; pricing in which the typical bill is determined by high fixed charges <br /> and Iow commodity charges. <br /> <br />b) Conservation pricin~ provides incentives to customers to reduce average or peak use, <br /> or both. Such pricing includes: rates designed to recover the cost of providing <br /> service; and billing for water and sewer service based on metered water use. <br /> Conservation pricing is also characterized by one or more of the following <br /> components: rotes in which the unit rate is constant regardless of the quantity used <br /> (uniform rates) or increases as the quantity used increases (increasing block rates); <br /> seasonal rates or excess-use surcharges to reduce peak demands during summer <br /> months; rates based upon the long-run marginal cost or the cost of adding the next <br /> unit of capacity to the system. <br /> <br />c) Adoption of lifeline rates for low income customers will neither quali~' nor disqualify <br /> a rate structure as meeting the requirements of this BMP. <br /> <br />CUWCC Rate Impact Study <br /> <br /> Within one year of the adoption of this BMP revision, the CUWCC shall undertake a <br /> study to determine the relative effect of conservation rate structure influence on <br /> landscape and indoor water use. The study shall develop sample areas that incorporate <br /> varying rate structure environments (e.g., low, uniform commodity rates,: high uniform <br /> commodity rates; increasing block rates, etc.). As practical, the study shall utilize direct <br /> metering of customer end uses, and shall control for weather, climate, land use patterns, <br /> income, and other factors affecting water use patterns. If the study shows significant <br /> potential savings, as determined by a balanced committee of voting Council <br /> representatives, a revised pricing BMP containing numeric targets or other appropriate <br /> standards shall be developed for a CUWCC vote. <br /> <br />-I- <br /> <br /> <br />