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AWWA ACE63107

AWWA ACE63107 Conservation Pricing Impacts on Revenues and Customers

Conference Proceeding by American Water Works Association, 06/01/2006

Bagnall, Bernice; Matthews, Paul

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This slide presentation outlines conservation pricing impacts on revenues and customers. Topics outlined include: impact of price on your customer; price elasticity concepts; price elasticity applied; water utility cost structure; rate design; goals for conservation savings; and, characteristics of conservation rate designs. A case study is presented of the Tualatin Valley Water District rate study. Rate design alternatives are outlined and include: Status Quo, existing rate structure;Scenario A - reduced thresholds;Scenario B - excess-use rates;Scenario C - three blocks; and,Scenario D - three block SFR. Evaluation criteria is given, along with criteria for implementation, equity, customer impact, conservation, and financial, reasons why Scenario A was selected, and, mitigation for rate schock. Includes tables, figures.

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