Power and Utilities Cost of Service and Rates
Walking the line between water conservation and customer rates
Water conservation is needed for the environment, but there is a line between conservation and the impact on customer rates. It is a balancing act that is part of the business. Why is that and how can it be addressed.
Encouraging water conservation and cost of service water rates
The utility and electric co-op business model walks a fine line between encouraging customer conservation to be a steward of the environment and recovering the utility's cost of providing service to its customers. Other factors in play, such as greater efficiencies in water use in plumbing fixtures, recycled water, and smart watering, naturally drive down water use. In the electric business, reductions in electric use due to more efficient appliances, air conditioning, hearting, lighting, and computers, coupled with increase in electric use due to electric cars (just the start of that trend) leads to an interesting landscape when it comes to electric rates.
But our topic in this article is how to connect the recovery of the costs of serving water customers and reduce consumption by all customers.