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Show the utility. In the current range of prices for water, the price- demand relationship is not very elastic. While water use may decrease with increased rates, a 10 percent increase in rates may only result in a 2 percent decrease in use and the net effect may be a small increase in revenues. Developing a price structure that takes this into account may result in a revenue neutral picture while still encouraging conservation. Salt Lake City implemented " seasonal pricing" beginning in the summer of 1995. Other agencies should examine closely the adoption of similar rates based on the experience of Salt Lake City. ( See Section 17.4.7) Recommendation - Local water provider agencies should implement an increasing block rate pricing structure that encourages water conservation. 17.7.2 Municipal Water Conservation Issue - Some communities rely on other purveyors for their water supplies and have not developed their own water conservation plans. Discussion - Most communities have come to rely, at least in part, upon wholesale water purveyors for their water supplies. The water purveyors have taken it upon themselves to evaluate future demand and develop future water sources. The Metropolitan Water District of Salt Lake City and Salt Lake County Water Conservancy District have taken an active role in planning and developing to meet future demand. This, however, does not free the individual communities from considering their own future needs. Each community should evaluate its own particular situation with regard to present supplies, present per capita use, anticipated future growth and available water supplies. Recommendation - Communities should work together with wholesale water providers to develop water conservation plans that significantly conserve existing water supplies and help insure an adequate future supply. • 9 |