Texas Water Conservation Association
Mid-Year Conference | June 13, 2014
Water Conservation Programs and Associated Rates
...
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Water Rate Design Options
General Rate Setting Goals:
• Rates that are equitable and ...
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Conservation Based Pricing
Conservation Based Pricing – is the use of rate
structures...
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Water Rate Design Options
The most common types of water conservation
oriented rate s...
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Options to Reduce Water Consumption
Rate Structure Impact
Drought Demand Rates
Reduce...
NEWGEN STRATEGIES AND SOLUTIONS, LLC
What About Raw Water Providers?
• Rate design options limited by take-or-pay
pricing ...
NEWGEN STRATEGIES AND SOLUTIONS, LLC
What is Happening in Texas?
• 10-30% reduction from “normal” summer peak
(wholesale)
...
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Challenges:
• Demand hardening – inability to further
decrease usage significantly
a)...
NEWGEN STRATEGIES AND SOLUTIONS, LLC
For Conservation Based Pricing and
Drought Restrictions to be Successful:
• Customers...
Questions or Comments?
Mr. David S.Yanke
dyanke@newgenstrategies.net
Direct: (512) 649-1254
Cell: (512) 773-5494
3409 Exec...
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Water Conservation Programs and Associated Rates

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Presented at TWCA Mid Year Conference - June 13, 2014 Presented by: David S. Yanke NewGen Strategies & Solutions

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Water Conservation Programs and Associated Rates

  1. 1. Texas Water Conservation Association Mid-Year Conference | June 13, 2014 Water Conservation Programs and Associated Rates Presented by: David S. Yanke NewGen Strategies & Solutions
  2. 2. NEWGEN STRATEGIES AND SOLUTIONS, LLC Water Rate Design Options General Rate Setting Goals: • Rates that are equitable and reflect the cost of service to each customer class • Rates that ensure the financial stability of the utility • Rates that promote conservation 2
  3. 3. NEWGEN STRATEGIES AND SOLUTIONS, LLC Conservation Based Pricing Conservation Based Pricing – is the use of rate structures that discourage the inefficient use or waste of water. 3
  4. 4. NEWGEN STRATEGIES AND SOLUTIONS, LLC Water Rate Design Options The most common types of water conservation oriented rate structures: • Drought demand rates • Excess use rates or excess surcharges • Inclining block rates • Seasonal rates 4
  5. 5. NEWGEN STRATEGIES AND SOLUTIONS, LLC Options to Reduce Water Consumption Rate Structure Impact Drought Demand Rates Reduces demand during drought (average and peak demand) Excess-Use Rates Reduces peak demand Inclining Block Rates Reduces average and peak demand Seasonal Rates Reduces seasonal peak demand 5
  6. 6. NEWGEN STRATEGIES AND SOLUTIONS, LLC What About Raw Water Providers? • Rate design options limited by take-or-pay pricing provisions, etc. • Restrictions more common • Ex. Stage 2 Drought – 20% mandatory reduction to wholesale customers 6
  7. 7. NEWGEN STRATEGIES AND SOLUTIONS, LLC What is Happening in Texas? • 10-30% reduction from “normal” summer peak (wholesale) • Drought surcharge - $10/month (retail) 7
  8. 8. NEWGEN STRATEGIES AND SOLUTIONS, LLC Challenges: • Demand hardening – inability to further decrease usage significantly a) A hospital b) Past investments in conservation • Measuring impact of conservation based rates a) San Marcos – rapid growth makes impact of rate changes difficult to quantify 8
  9. 9. NEWGEN STRATEGIES AND SOLUTIONS, LLC For Conservation Based Pricing and Drought Restrictions to be Successful: • Customers must be educated • United Water in Idaho – advance notification of 25% summer increase • Seattle Public Utilities – citizen workshops • many utilities – mailers, email, etc. • Billing software must be capable of monitoring customer usage 9
  10. 10. Questions or Comments? Mr. David S.Yanke dyanke@newgenstrategies.net Direct: (512) 649-1254 Cell: (512) 773-5494 3409 Executive Center Drive Suite 128 Austin,TX 78731 Phone: (512) 479- 7900

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