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AWWA ACE92060
- Creating Economic Incentives for Conservation: Guidelines for Private Water Companies and Public Utility Commissions
- Conference Proceeding by American Water Works Association, 01/01/1992
- Publisher: AWWA
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Focusing on investor owned utilities, this paper discusses a number of the disincentives and incentives for water conservation, and presents several recommendations for utilities and public service commissions to create conditions more conducive to water conservation. Disincentives include revenue shortfalls, more frequent rate increases, and changes in customer demand. Incentives include revenue stabilization account, or an account to compensate utilities for excess or shortages of revenues resulting from reduced water demand; shared savings, which allow utility and customer to share the economic savings that are realized in pursuing demand management rather than supply augmentation; returns on conservation investments, and environmental asset preservation, or the preservation of natural resources. A case study of Sun City, Arizona, rate structure is given as an example of a win-win situation for utility and customer. The author gives 10 specific suggestions for making water conservation more attractive to investor owned utilities; five suggestions are for the utility, five for regulatory authorities.
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