Four Corner - Texas Water Development Board

2. Conservation-Oriented Water Rate Structure
The structure of rates can be as important as the rate itself in consumer water
conservation. Some rate structures encourage conservation, while others may
have little affect. Rates should be structured to reflect the cost of service,
including property, hardware, operations, maintenance, personnel, the
depreciation of capital assets, and needed planning expenses.
An effective rate structure can encourage conservation. Rate structures that
result in an unchanged total utility bill are ineffective in encouraging
conservation. Additionally, water conserved in response to increased price is
delayed until utility bills are received by consumers.
Anticipated water use reductions by customers in response to the higher rates
may not be effective when base prices for service are too low. Low base prices
for utility service dampens the impact on utility bills by increasing rates. In
order for rates to affect water conservation levels, a rate increase needs to have
an impact on utility service charges.
A flat rate structure, such as $13.00 for the first 3,000 gallons; 1.50 for each
1,000 gallons after the base amount, neither encourages nor discourages water
conservation.
3. Universal Metering and Meter Repair and Replacement
All water users in the service area must be metered. All new construction,
including multi-family dwellings, must be separately metered. The universal
metering is part of the overall Water Conservation Plan. The following meter
maintenance and replacement programs has been recommended by the
TWDB:
Meter Type
Master meter
Larger than 1-1/2 inch
1-1/2 inch and less
Test and Replacement Period
Annually
Annually
Every 10 years
Another segment of a successful conservation program the proposed district
must maintain a meter maintenance program, coupled with computerized
billing and leak detection programs.
4. Water Audits and Leak Detection
Through their billing program, the proposed utility should audit billings to
identify excessive usage and then take steps to determine whether it is a result
of leakage. Once located, all leaks should be immediately repaired. A
continuous leak detection and repair program is key to minimizing
unaccounted for system water losses.
Four Corners Area Water and Wastewater Facilities Planning Study
Page 8-4
FINAL REPORT