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Local Water Supply Plan Template –July 8, 2016 36 Customer Category Conservation Billing Strategies in Use * Conservation Neutral Billing Strategies in Use ** Non-Conserving Billing Strategies in Use *** ☐ Service charge not based on water volume ☐ Other (describe) Commercial/ Industrial/ Institutional ☐ Monthly billing ☒ Increasing block rates (volume tiered rates) ☐ Seasonal rates ☐ Time of use rates ☐ 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) ☐ Uniform ☐ Service charge based on water volume ☐ Declining block ☐ Flat ☐ 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 Dr a f t 11 / 2 0 / 2 0 1 7