Supplying water to customers is a business. As in any business, water sales revenues need to be accurately forecasted and balanced against current and long-term future water supply and treatment costs. Conservation and efficiency is recognized as a way to effectively reduce long-term costs, and is often the most cost-effective “new water supply” option available. However, planning for water conservation programs must be done carefully to avoid revenue instability issues for the system.

Comprehensive water supply planning is required by law in California as well as in many other states, and is premised on the concept that water suppliers should plan water supply portfolios that guarantee long-term, sustainable delivery of safe, reliable drinking water. This means prioritizing water conservation and efficiency programs in that portfolio. Water service providers can promote conservation and efficiency in a variety of ways; however, here we focus on conservation-oriented water rates.

PowerPoint Presentations from the Workshops on Water Rates and Finances:

Tools for Success: Forecasting Water Demand 

Water Rate Affordability in California

A Public Goods Charge for Water

Conservation Rates: Sensible Pricing for Water in the Cal Am Settlement

Consumption-Based Fixed Revenue

Capital Finance Overview: Dealing with the New Norm

Innovative Agricultural Rate Structure

Modification of Water Rates 2011: City of Napa

Stories from the Field: Practice and Politics of Rate Setting in the Real World

Water Demand Forecast Model: Seattle Public Utilities

An Overview of the “New Normal” and Water Rate Basics

Pricing Practices in the Electricity Sector to Promote Conservation and Efficiency: Lessons for the Water Sector

Beyond Water Pricing: An Overview of Water Financing in California

Issue Brief: Water Rates: Water Demand Forecasting

Issue Brief: Water Rates: Water Affordability

Issue Brief: Water Rates Communication and Education