Thomas W. Chesnutt

Water Budgets and Rate Structures - Innovative Management Tools

AND RISING COSTS. Water efficiency. standards on customer-specific budgets Once are volumetric an thought innovative characteristics allotments to be means impractical of and water of conservative improving because to customers of water-use resource technobased on customer-specific characteristics and conservative resource standards are an innovative means of improving water-use efficiency. Once thought to be impractical because of technological constraints, water budgets linked with an increasingblock rate structure have been implemented successfully by more than 20 utilities. As utilities develop advanced customer information systems and geographic information systems (GIS), these rate structures are expected to be applied more broadly. Water budget rate structures are attractive to water agencies searching for stable revenue generation, improved customer acceptance, increased water-use efficiency, augmented affordability of nondiscretionary customer water consumption, and improved drought response. A growing number of utility managers are finding that water budgets offer potential benefits to water utilities and their customers in coping with increasing water scarcity and rising costs. Water budget-based rate structures are probably not for everyone. This rate structure form requires more customer-level data than traditional rate structures and may be more expensive and labor-intensive to put in place. Utilities without a pressing need to encourage water conservation are not good candidates for water budgets because implementation costs might exceed any nonconservation benefits. For utilities that want to supplement water conservation efforts and send a fair and effective price signal about usage to their customers, water budgets appear to be an excellent option. The objective of this research was to examine water budgets and their potential value to North American water utilities. It also evaluated varying applications of the water budget concept that have been adapted to different conditions. Key issues identified include:

Chlorinated solvents: Market interactions and regulation☆

Abstract This paper focuses on the five major chlorinated solvents, a class of interrelated chemicals that is currently under regulatory scrutiny for a variety of reasons. It presents historical production data and describes the largest end uses-metal cleaning and dry cleaning. The research explores the opportunities for substitution among the chlorinated solvents. Historical case studies of two of the chlorinated solvents-trichloroethylene, used largely in metal cleaning and perchloroethylene, used heavily in dry cleaning-are examined. These cases studies emphasize that regulation without attention to substitution can have unexpected effects. The results of the analysis suggest that because of the complex substitution possibilities, potential future regulation should consider the solvents in concert.

Water efficiency programs for integrated water management

OBJECTIVES: The objectives of this project were to (1) develop a rigorous and universally-applicable set of definitions of benefit and cost components from different perspectives, (2) compile, in an easily-accessible form, the best available information on water use efficiency (WUE) program costs and savings, and (3) provide clear guidance to water utilities on program cost and benefit estimation.

A Balanced Approach to Water Conservation in Utility Planning

W ater utilities across the nation are struggling with many challenges, including issues of water supply, water quality, wastewater disposal, stormwater management, environmental protection, climatic change, and financial stability. This article summarizes a Water Research Foundation study (WRF 4175) that rigorously examined the historical experience of water utilities employing water-use efficiency (WUE) programs to improve the delivery of water service. The study set forth a conceptual framework for waterconservation planning that distinguishes between short-term drought management and long-term WUE. WRF 4175 identified implementation barriers and solutions and provided detailed utility case studies and a user-friendly decision framework to help utility managers and planners sculpt WUE efforts to match their objectives. The stakes involved in meeting future water demand—to say nothing of infrastructure replacement needs and water quality requirements— strongly suggest a high payoff to science-based knowledge on how to best deploy short-term drought management and long-term WUE. WRF 4175, A Balanced Approach to Water Conservation in Utility Planning (authors are Thomas W. Chesnutt, Gary Fiske, Eric Rothstein, David Pekelney, Janice Beecher, David Mitchell, and Dana Holt), provides concepts, information, and planning tools to better implement cost-effective water conservation. A balanced approach to water conservation requires understanding the role that improving efficiency of a customer’s end uses of water can play in accomplishing water utility objectives. Water utilities have increasingly come to appreciate the value of WUE for accomplishing two types of utility objectives: WATER CONSERVATION PROGRAMS ARE THE SUBJECT OF A

METHODS TO EVALUATE CONSERVATION RATE STRUCTURES(1)

Evaluating a rate structure is an analytic activity that improves understanding of the consequences of rate structure choices. The appropriate amount of analysis depends on both the cost of conducting the analysis and the benefit derived from the analysis. Water agencies with stable system costs and demands may need to invest less in evaluation. Water agencies facing rapidly changing system costs, demands, or other significant uncertainties may need to invest more in evaluation. In general, we aim to reduce the cost and increase the benefits of rate structure evaluation: