In 1990, Irvine Ranch Water District (IRWD)was driven by drought, wholesale price increases and politics to seek a new rate
structure that would reward conservation and penalize water waste while maintaining a
stable revenue stream for the agency. IRWD was also motivated to create a system that
addressed long-term water supply/demand problems and sent a clear message to customers that efficient water use was the goal for all customers.
Today, water quality/water runoff issues predominate agency focus. Water use efficiency is the key to reducing non-point water pollution (source runoff reduction). The rate structure presented in this paper has been found to be a valuable tool in reducing excess landscape water use. The rate structure elements include: equity, each customer group shall be treated the same, or must feel they are
doing no more or no less than any other customer group;
revenue stability, avoid the decrease in revenue that traditionally
accompanies conservation actions by customers;
credibility, base the rate structure on defensible information that is logical,
simple and can be perceived as credible in the eyes of the customers;
building a conservation ethic, California water supply and population growth analysis by the Department of Water Resources shows chronic water shortages, even in normal rainfall years, in the near future and the system must be flexible to
deal with those situations; and,
flexibility, create a structure that can address the needs of a wide variety of
customers and be adaptable.
Includes figures.