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

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

Published: September 2013

Authors: Kristina Donnelly, Juliet Christian-Smith, and Heather Cooley

Pages: 26


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

Overview

Energy and water utilities face fiscal challenges related to declining per-capita demand, as well as mandates for continued reductions in consumption. This study examines a range of electricity pricing practices and policies that California electric utilities have used to remain financially stable as per-capita demand decreased. Although rate-setting processes for electric utilities and water utilities differ, this study finds that a number of promising electricity pricing practices could be implemented, or further implemented, in the water sector for more effective water pricing.

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