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Attachment C Conservation Ra#es Minnesota Starutes, section 103G.231, was amen�ed in 200$ to include a re�quirement for public water� suppiiers serving more than ].,000 people fo adapt a water rate structure that encourages canservation: Minnesota S1a�utes, section ]03G.291, subd. 4. Conservation rate structure required. (a) For the �urposes of this section, "conservation ra#e structure" means a rate structure that encourages conservation and n�ay include increasing block rates, seasonal rates, time ofuse rates; individualized goal rates, or excess use rates. The rate structure must consider each residential unit as an inclividual user in multiple-Fatnily dwellings. {b} To encourage conservation, a pubi.ic water sup�lier setving n�►ore than ],000 people in tha metropolitan area; as defned in sectian 473.121, subdivision 2, shall use a conservation rate structure by January 1, 2010. Ail r��naitjEng public water suppliers serving mare chan 1,000 people shaJl use a conservation rate structure by January 1, 2013. (c} A public water supplier withaut the proper measuring equipment ta track the amount of water used by its users, as pf the effecYive date of this act, �s exempt froEn CEtis subdivision and the conservation rate structute requirement under subdivision 3; �aragraph {c). In addition, Minnesota Statues, section ]03G.291, was further amended to read: Subd. 3. Water supply plans; demand redt�ct�or�. (c) Publ.ic water suppliers serving more than ],000 people must employ water use demand reduction meas�res, includin� a conservation rate structure, as defined in subdivision 4, paragraph (a), unless exempted under subdivisian 4, para�raph fc), beFare requesting approval from #he commissioner af health under secfion 144.383, paragraph (a), to construct a public water supply well or requesting an increase in the authorized volume of appropriatian. I7emand reduction measures tnus[ include evaluation of aonservation rate s#ructures and. a public education program tha[ may include a toi.let and showerhead retrofit progratn. Public water suppliers serving more than 1,000 residents will need to adopt a conservation rate structure before requesting well construction approval for a public water supply we[l or before requesting an increase in permitted �olume for their water a�propriation �ermit. Examples af Conservation Rates: Below are examples of rate structures that encourage conservation. Many variations ancf combinations of these examples are possible, NOTE: Rate structures aften include a service charge (base rate) and a volume based charge. Service charg�s may caver fixed costs (capital improvements) and the valume charge is often far operation and. maintenance costs. Vo[ume charges usu.ally use units of 1,00Q gallons or E00 cubic feez (748 gallons). [ncreasin� �[ock Rates: Cost per unit increases as water use increaszs within specified "blocks" or volumes.. The increase in cost between each block should be significan� enough (25% or more and 50% between the ]ast two stzps) to encoura�e canservation.. Example: 0-6,000 ga.11ans ° $2.5011000 gallans. b;00Q-12,000 gaI[ons - �3.15/I000 gallons. 12,000-24,OQ0 �ailons ° �4.00/] 000 gallons. Abo�e 24,000 gallons = $6.00/1000 gallons. Seasonal Rates: The rate per unit increases i.n the summer Eo encourage t.he efficient use of water during peak demand periods caused by outdoor wafer uses. S�asonal rates can take the form of � surcharge added to the normal rate ar a separate fee schedule for winter and summer periods. Example: Surcharge method -$1.00/lODO gallons is added on top af the regular fee schedule %r all water use between May 1�nd Octo6er E. Page I