| OCR Text |
Show SUMMARY OF FINDINGS ESTIMATED PRICE- INDUCED CONSERVATION POTENTIAL Monthly estimates of the potential conservation that could be realized by the adoption of conservation- inducing rate structures within the CUWCD service area were developed based on an estimate of current conditions, including predominant water rate structures and average rates, and the price elasticities developed through the study. Figure ES- 10 graphically interprets the monthly percent decrease in consumption that would be expected for each of the four pricing structures examined. As can be seen, pricing structures that are traditionally considered to be more aggressive do, in fact, offer the greatest opportunity to decrease water consumption. Of the structures examined, an increasing block rate structure should provide the greatest opportunity for conservation. Any conservation structure, however, will provide an appropriate signal to the customer that reflects the value of water. In determining which structure best suits a particular agency, a number of criteria must be considered, including, but not limited to, conservation potential. Figure ES- 10 Potential Percent Decrease in Consumption From Implementation of Conservation Rates Q 0 l_ l I I I I 1 I 1 I I I I l_ l I I I 1 Jan 96 Jan 97 Jan 98 Dec 98 MONTH UNIFORM SEASONAL INCREASING BLOCK SPACIAL PHASE OUT OF AD VALOREM TAXES The Act requires an evaluation of rates based on the effect of phasing out the collection of ad valorem taxes by CUWCD and the petitioners of project water over a five- year and ten- year period. Any of the pricing policies evaluated as a part of the Pricing Study can address the elimination of ad valorem taxes by incorporating the revenue currently ES- 33 Executive Summary |
