A-2000-136 - Laserfiche WebLink

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