The Evolution of Conservation Rates in Phoenix, Arizona

by Edward G. Blundon,
Jeffrey S. DeWitt,



Document Type: Proceeding Paper

Part of: Water Management in the '90s: A Time for Innovation

Abstract:

Conservation or increasing block rates first implemented in Phoenix, Arizona in 1982 were reexamined by a three year study involving Water Department staff, a Citizen Rates Committee and consultants. The study recommended to replace the increasing block rate structure which consisted of two season, three customer classes and three blocks with a simpler uniform rate structure with a three seasons, and no customer classes in 1990. The new rate structure, which actually enhanced conservation savings, uses a new cost of service concept that allocates extra capacity cost to the months when the capacity is used, This increases the seasonal differential in the rates to enhance conservation savings.

Subject Headings: Water conservation | Seasonal variations | Economic factors | Client relationships | Benefit cost ratios | Water management | Urban areas | Arizona | United States

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