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City of Little Canada 8-23 Water Supply Plan <br />63BTable 8-26: Rate structures for each customer category <br />Customer <br />Category <br />Conservation Billing <br />Strategies in Use * <br />Conservation Neutral <br />Billing Strategies in <br />Use ** <br />Non-Conserving Billing <br />Strategies in Use *** <br />Residential ☐ Monthly billing <br />☐ Increasing block rates <br />(volume tiered rates) <br />☒ Seasonal rates <br />☐ Time of use rates <br />☒ Water bills reported in <br />gallons <br />☐ Individualized goal rates <br />☐ Excess use rates <br />☐ Drought surcharge <br />☐ Use water bill to provide <br />comparisons <br />☒ Service charge not based <br />on water volume <br />☐ Other (describe) <br />☐ Uniform <br />☐ Odd/even day <br />watering <br />☐ Service charge based on <br />water volume <br />☐ Declining block <br />☐ Flat <br />☐ Other (describe) <br />Commercial/ <br />Industrial/ <br />Institutional <br />☐ Monthly billing <br />☐ Increasing block rates <br />(volume tiered rates) <br />☒ Seasonal rates <br />☐ Time of use rates <br />☒ Water bills reported in <br />gallons <br />☐ Individualized goal rates <br />☐ Excess use rates <br />☐ Drought surcharge <br />☐ Use water bill to provide <br />comparisons <br />☒ Service charge not based <br />on water volume <br />☐ Other (describe) <br />☐ Uniform ☐ Service charge based on <br />water volume <br />☐ Declining block <br />☐ Flat <br />☐ Other (describe) <br />☐ Other <br /> <br />* Rate Structures components that may promote water conservation: <br />• Monthly billing: is encouraged to help people see their water usage so they can consider <br />changing behavior. <br />• Increasing block rates (also known as a tiered residential rate structure): Typically, these <br />have at least three tiers: should have at least three tiers. <br />o The first tier is for the winter average water use. <br />o The second tier is the year-round average use, which is lower than typical summer use. This <br />rate should be set to cover the full cost of service. <br />o The third tier should be above the average annual use and should be priced high enough to <br />encourage conservation, as should any higher tiers. For this to be effective, the difference in <br />block rates should be significant. <br />• Seasonal rate: higher rates in summer to reduce peak demands <br />• Time of Use rates: lower rates for off peak water use <br />• Bill water use in gallons: this allows customers to compare their use to average rates