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Implementing Consumption‐Based Fixed Rates in Davis, Calif.

Spang, Edward S. / Loge, Frank J. / Abernathy, William / Dove, Douglas R. / Tseng, Catherine / Williams, Matt

Water utilities in California must promote water conservation, yet have a limited suite of rate structures that can be used to charge for water. Under traditional rate structures, a strong price‐based conservation signal can produce conservation yet result in revenue instability. California public water utilities face additional challenges as a result of the standards for reporting, accounting, and proportionality under Proposition 218. One solution for resolving these structural tensions between conservation and fiscal solvency in a Proposition 218 environment is the implementation of consumption‐based fixed rates (CBFR). This article describes the design and implementation of CBFR in Davis, Calif.

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Implementing Consumption‐Based Fixed Rates in Davis, Calif.

Spang, Edward S. / Loge, Frank J. / Abernathy, William / Dove, Douglas R. / Tseng, Catherine / Williams, Matt

Water utilities in California must promote water conservation, yet have a limited suite of rate structures that can be used to charge for water. Under traditional rate structures, a strong price‐based conservation signal can produce conservation yet result in revenue instability. California public water utilities face additional challenges as a result of the standards for reporting, accounting, and proportionality under Proposition 218. One solution for resolving these structural tensions between conservation and fiscal solvency in a Proposition 218 environment is the implementation of consumption‐based fixed rates (CBFR). This article describes the design and implementation of CBFR in Davis, Calif.

Implementing Consumption‐Based Fixed Rates in Davis, Calif.

Spang, Edward S. / Loge, Frank J. / Abernathy, William / Dove, Douglas R. / Tseng, Catherine / Williams, Matt

Water utilities in California must promote water conservation, yet have a limited suite of rate structures that can be used to charge for water. Under traditional rate structures, a strong price‐based conservation signal can produce conservation yet result in revenue instability. California public water utilities face additional challenges as a result of the standards for reporting, accounting, and proportionality under Proposition 218. One solution for resolving these structural tensions between conservation and fiscal solvency in a Proposition 218 environment is the implementation of consumption‐based fixed rates (CBFR). This article describes the design and implementation of CBFR in Davis, Calif.

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Title:

Implementing Consumption‐Based Fixed Rates in Davis, Calif.

Contributors:

Spang, Edward S. (author) / Loge, Frank J. (author) / Abernathy, William (author) / Dove, Douglas R. (author) / Tseng, Catherine (author) / Williams, Matt (author)

Published in:

Journal ‐ American Water Works Association ; 107 ; E380-E388

Publication date:

2015-07-01

Size:

9 pages

ISSN:

1551-8833 , 0003-150X

DOI:

https://doi.org/10.5942/jawwa.2015.107.0085

Type of media:

Article (Journal)

Type of material:

Electronic Resource

Language:

English

Keywords:

Public Relations , Billing , billing , rates and charges , Rate Structures , affordability , legal issues , public relations , Water Conservation , Davis, California , Water Rates

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