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Put Your Money Where Your Water Is: Building Resilience Through Rates, Amy Hardberger
Put Your Money Where Your Water Is: Building Resilience Through Rates, Amy Hardberger
Faculty Articles
Utilities are challenged with the task of meeting future water demands while generating revenue through the use of the resource. Customarily, utilities base demand projections on subsequent use and calculate price on past consumption. The traditional model of extrapolating cost, based on past consumption, does not allow the utility flexibility to protect the resource in times of crisis. In recent years, water resources have been taxed by population increases and changes in weather patterns. Utilities encourage the use of water at low fees and are unable to conserve during times when the resource is available and cheap. This ineffective rate …