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3 Conservation Rates Page 2 Individualized Goal Rate (Water Budget Rate): A rate with tailored allocations developed for each customer. The rates increase as the allocation is used or exceeded by the customer. The allocation is generally based upon winter or January use. Example: A family of four used 6,200 gallons in January. Summer use is higher than January use so a factor is applied to determine a summer allocation (1.5 x 6,200 gallons = 9,300 gallons). 0 -6,000 gallons = $2.50 /1000 gallons. 6,000 -9,300 gallons = $2.75/1000 gallons. 9,300 - 18,600 gallons = $4.00/1000 gallons. (Allocation is exceeded.) Above 18,600 gallons = $6.00/1000 gallons. Excess Use Rates: Cost per unit increases greatly above an established level in order to trigger a strong price signal that discourages excessive use. This rate is similar to an increasing block rate but with much higher charges for the larger volume blocks. Example: 0 -6,000 gallons = $2.50/1000 gallons 6,000- 12,000 gallons = $3.15/1000 gallons 12,000- 24,000 gallons = $5.0011000 gallons (Excessive Use Rate) Above 24,000 gallons = $7.50/1000 gallons (Excessive Use Rate) Multiple — Family Dwellings: Total water use in a multiple - family dwelling, which has only one water meter for the entire dwelling, may exceed that of a single - family dwelling. The statute does not require individual water meters for each residential unit within a multiple -family dwelling; however, the required conservation rate at which the multiple - family dwelling's water use is billed must consider the number of residential units within that multiple - family dwelling. Example: A four -plex uses a total of 18,000 gallons per month or approximately 4,500 gallons per residential unit. Water use for each residential unit fails within the first block (0 -6,000 gallons) of the above Excess Use Rate example. A rate of $2.50/1000 gallons would apply up to a total use of 24,000 gallons for the multiple - family dwelling. Thereafter, the rate increases according to the rate schedule, always considering each residential unit as an individual user. Non - conservation rate examples: Declining (Decreasing) Block Rates: The cost per unit of water (cubic foot or gallon) decreases as the water use increases beyond the basic block. This rate structure provides no incentive to conserve because the cost of water per unit decreases with increased use. Flat Rates: A set fee allows the use of an indefinite amount of water. This rate structure is used where water is unrnetered and provides no incentive to conserve water because cost is unrelated to volume used. Uniform Rates: The cost per unit is the same regardless of the volume used. This rate structure is considered conservation neutral. Service Charge (Base Rate) that includes a Minimum Water Volume: The inclusion of a minimum volume of water in the service charge (base rate) discourages conservation especially if the minimum volume exceeds average customer usage. Conservation Rates 8- 18- 08.pdf