Old and familiar ways of setting water rates can fail to recover the cost of providing water service, can send inaccurate signals as to the worth of this scarce resource, and are becoming more and more difficult to defend. At the same time, revenues from rates and charges are essential if water agencies are to accomplish their mission of providing dependable, potable water on demand. What can water utilities do to price water more sensibly, ensure financial viability, and achieve a publicly accepted and successful rate-making process? The California Urban Water Conservation Council has developed a technical handbook on alternative pricing approaches and their associated effects. Designing, Evaluating, and Implementing Conservation Rate Structures demonstrates how quantitative tools can be used to measure rate effects, develop strategies for managing the results of rate changes, and provide insights about the process of successful rate-making. By linking technical knowledge with practical implementation tools, rate-making that incorporates conservation objectives can be accomplished.
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