Presented at TWCA Mid Year Conference - June 13, 2014 Drema Gross Water Conservation Division Manager Austin Water

1. Managing Rate Impacts
of Conservation
June 13, 2014
Drema Gross
Water Conservation Division Manager
Austin Water

2. • Started in early 1980s, continued through 1990s
– Education, incentives
• Increased attention to conservation in mid-2000s
– Code requirements, watering restrictions
• Prepaid water supply up to 201,000 acre-feet
– Current use between 140,000 and 167,000
– Estimated ~$15M/yr payment when trigger reached
• Growing population, high drought risk
Austin’s Conservation History

4. FY2011 Residential Rates

5. • Increase fixed portion of bill
– Concern about conservation discincentive, “regressive” charge, impact
on low users
• Implement Revenue Stability Fee
– Build reserve fund to cover unexpected losses
• Restructure volumetric tiers
– Lower starting points for Tiers 2-5
• Consider drought rates
• Revise sales projection methodology
– Assume “new normal” starting in 2008
Revenue Stability Strategies

6. FY14 Residential Rates

7. Questions?