properly designed and implemented water rate structure is an essential element of any water conservation program.

Incentive Pricing

Much research and experimentation have been done in the area of water pricing as an incentive to reduce water use. Nearly all the literature agrees that a properly designed water rate structure is an essential element of an effective water conservation program. If water prices are too low, then the signal sent to the consumer is that the resource is abundant and they need not conserve.⁴

In an era where developable water supplies are reaching their limits and economic and environmental concerns make further development less desirable, it makes sense to reflect these conditions in water rate structures. Yet, many water providers continue to use structures that do little to promote efficiency.

TABLE 9 Water Prices of Various Western Cities
City	Estimated Cost per 1,000 gallons
Reno	$3.39
Seattle	$2.30
Los Angeles	$2.22
Park City, UT	$2.20
Tucson	$1.81
Boise	$1.68
Las Vegas	$1.65
Phoenix	$1.61
Albuquerque	$1.41
Denver	$1.14
Sandy, UT	$0.99
Salt Lake City	$0.87
Provo, UT	$0.75
Sacramento	$0.75
AVERAGE	$1.63
Utah Average	$1.15
National Average	$1.96
(Out-of-state values adapted from, "Western States Water Newsletter," dated, December 31, 1998. In-state values taken from Utah Division of Drinking Water, 1999 Survey of Community Drinking Water Systems, 2000, Appendix 7, 1-6.)

Table 9 lists average water prices of several cities in Utah and the western United States. As shown, Utah's rates are among the lowest in the West and are well below the national average. Some reasons that may help explain why Utah's rates are lower include the following: much of Utah's population is located near mountain watersheds which have been easily harnessed to gravity feed a significant portion of the state's water needs; ground water use has been managed well with typical pump-lifts that are reasonable and have remained fairly steady; and, property taxes are used to pay a portion of the water costs.

Whatever the reasons for Utah's lower rates, simply raising water prices is not the solution. Instead, water pricing strategies that "reward" high water use with lower or static rates, should be replaced with pricing structures that discourage waste and reward efficiency. Rate structures must also be designed to avoid capital shortfalls as customers succeed in conserving water. Some of these effective rate structures, including increasing block, seasonal and ascending block rates, are discussed briefly below.

Increasing Block Rates
The increasing block rate is currently used by many water systems in Utah. It typically has a base charge of $5 to $20 which must be paid whether or not any water is used. A fixed amount of water is usually made available as part of this base charge. The price of subsequent increments of water supplied then increases in a step-wise fashion. This rate structure encourages efficiency only if the steps in the incremental price are sufficient to discourage excessive use.⁵ Separating the base charge from any water actually delivered allows the water supplier to better reflect the actual costs of providing water service. The base charge is set to cover the fixed costs of providing service while the overage charges are set to cover the actual costs of delivery.

Seasonal Rates
This rate structure has a base charge much the same as the increasing block rate. The main difference is that instead of rate increases depending solely on the volume of water used, rates are set according to seasons. The price for each unit of water delivered in winter is lower than for water delivered in the summer. The summer price is set strategically to encourage consumers to be more conscious of irrigation habits during the months when peak demands often strain the delivery system. If desired, a spring and fall use rate can also be applied. This helps reflect the rising and falling costs associated with typical use patterns of a water supply system. It also helps water suppliers better communicate to consumers that irrigation water needs typically diminish during the spring and fall months and, therefore, sprinkler timers should be adjusted accordingly.

Ascending Block Rates
This rate structure requires that a target use be established for each customer. This target is based on the water needs of the landscape and the number of people in the home or business. Landscape water need is determined by using evapotranspiration rates for turf grass from local weather stations and landscape size. Then, each unit of water is priced in such a way so as to reward the consumer for using less than the target range and penalize them for using amounts that exceed the target range. Penalties are assessed by using a sequentially higher rate, typically doubling with each volume increment in excess of the target.⁶

Because of the effort required to obtain and maintain accurate data on all customers, the ascending block rate requires more staff and capital resources. However, it is also the most effective in providing an incentive to use water efficiently. Table 10 shows an annual summary of a customer's bill using an ascending block rate structure. Careful examination of this bill shows how the customer is charged for inefficient use of water throughout the irrigation season and the wasteful use of water in the months of September and October, two months where many people forget to turn back their automatic sprinkler timers.

Implementing incentive pricing structures, such as those outlined above, must be done carefully to be successful. A successful rate structure has the following characteristics:

• encourages more efficient water use without causing a shortfall in system revenue;
• provides for the identification of waste, rewards efficient use and penalizes excessive use;
• produces revenues from penalty rates that are used to fund water conservation programs;
• is supported by a water bill that clearly communicates the cost of wasted water to the responsible person; and
• is supported by a person or staff who can respond to customer calls for help in reducing usage.

Outdoor Watering Guidelines and Ordinances

If residential outdoor conservation were practiced, the potential savings would be great since it makes up the biggest part of residential use (approx. 67 percent). The Division of Water Resources estimates that the water needed to produce a healthy lawn on a typical residential landscape could be reduced 25 percent by following two simple steps. These are: (1) Watering to meet the consumptive use--the amount of water needed by a plant to produce maximum growth; and (2) Maintaining a sprinkler uniformity of about 60 percent.⁷ Consumptive use values are readily available for most areas of the state. Not only will watering to meet the consumptive use conserve water, but it also produces a healthier and better-adapted turf. Average residential sprinkler uniformities have been found to be about 54 percent. Increasing these to at least 60 percent can be achieved by designing sprinkler systems properly and by inspecting and maintaining performance regularly.

If a homeowner were to implement additional outdoor watering guidelines, overall water consumption could be reduced beyond 25 percent.⁸ Other guidelines include setting watering durations to suit different soil types, using several short durations (cycling) to water deeply while avoiding runoff, and watering flower and shrub areas less than turf areas. Another method that has proven effective in reducing water consumption is simply confining watering to times during the day that minimize evaporation, between 6 p.m. and 10 a.m., for example. After unsuccessfully attempting to reduce water use in its secondary water system by limiting watering to certain days, the Bountiful Sub-Conservancy District found that an ordinance restricting watering to the hours between 6 p.m. and 10 a.m. was the most effective method. By doing this, the district immediately reduced water consumption by about 17 percent.⁹

The potential savings and relatively unobtrusive nature of irrigation guidelines and ordinances make such measures extremely attractive. The immediate reduction in peaking loads that can be produced will not only conserve water but delay the need for system upgrades and expansion that are dictated by peak system demands. Any comprehensive water conservation program should seriously consider such measures.

Landscape Guidelines and Ordinances

The types of plants that make up a landscape and the total area that requires landscaping can have a significant impact on overall water consumption. Replacing typical turf grass and other water-loving vegetation with native or low water-use plants significantly reduces outdoor water needs; hard-scaping a portion of the landscape eliminates the need for water. If the low water-use vegetation is irrigated using efficient irrigation practices, outdoor water use can be reduced above and beyond the percentage mentioned previously. Not only do water-wise landscapes conserve water, but they consume less amounts of chemicals, require less maintenance than typical turf, and add interest and color to the ordinary landscape.

Changing the way people landscape so that it more closely matches the stresses of Utah's semiarid climate is an important aspect of long-term water conservation. Demonstration gardens and public education programs that communicate efficient landscaping techniques, as well as ordinances that promote more "natural" landscaping practices, are important components of an outdoor water conservation program. These measures could become a way of life in the future as demands for limited water supplies continue to rise.

A water-conserving landscape, often referred to as Xeriscape, incorporates wise irrigation practices and proper plant selection to produce an aesthetically beautiful landscape that is in harmony with the local climate. (Photos of commercial and residential Xeriscapes courtesy of Xeriscape Design, Salt Lake City.)

Commercial and Residential Water Audits

A water audit is becoming a commonly used tool to help consumers reduce their water use. A complete water audit consists of an indoor and outdoor component. Indoors, a typical audit involves checking the flow rates of appliances and identifying leaks, and if necessary, replacing basic fixtures with low-flow devices and making other recommendations. Outdoors, an audit measures the uniformity and precipitation rate of an irrigation system, identifies problems, and suggests how to improve system efficiency and water according to actual plant requirements.

Beginning in 1999, the Jordan Valley Water Conservancy District (JVWCD), in cooperation with the Central Utah Water Conservancy District (CUWCD) and Utah State University Extension Service initiated a free " water check" program. This water check is basically a simplified outdoor water audit for residents. The slogan for the program is "Slow-the-Flow, Save H20." Advertised through local media and at community events, the program allows residents throughout the Salt Lake Valley to improve their outdoor watering habits. During the spring of 2000, the program was extended to include residents of Utah County. Plans to expand into Davis County are underway.

The JVWCD, CUWCD and Utah State University Extension Service are collecting data on audited residences. This data is already providing valuable information on outdoor water use. The data will also be used to monitor and evaluate the performance of the program.

		Typical Water Use Within the Home The typical U.S. residence consumes about 69 gallons per person per day inside the home. This is approximately equivalent to one completely full bathtub. As indicated by the accompanying chart, approximately 27 percent of all the water used indoors goes down the toilet. The clothes washer uses another 22 percent for a total of nearly 50 percent of indoor water use from just two household appliances. Showers and baths consume about 18 percent, and faucets another 16 percent. Leaks account for a significant 14 percent. Surprisingly, only 3 percent of water used indoors is used by the dishwasher or other domestic purposes such as cooking and cleaning. Despite this fact, 100 percent of water supplied inside the home must meet stringent drinking water standards. The American Water Works Association (AWWA) estimates that a comprehensive program to install water efficient plumbing fixtures within the home and fix leaks could reduce total indoor water consumption by as much as 30 percent. (From Mayer, Peter W. et. al., Residential End Uses of Water, [AWWA Research Foundation, 1999], xxvi.)

Installation of Meters on All Water Connections

In order to effectively bill customers according to the amount of water they use, their connection must be metered. Frequently reading meters is also important. In Utah, communities currently meter most potable (drinking) water connections. However, secondary water is largely not metered due to unfavorable meter performance in untreated water systems. All connections, including secondary, should be metered. Not only will metering these connections immediately enhance water providers' ability to conserve water resources, but it will allow them to more accurately distribute the actual costs of water service among its many customers.

Retrofit, Rebate and Incentive Programs

It has long been known that the largest indoor consumption of water occurs at the toilet. This fact prompted legislation to replace toilets, which typically consume 3.5 to 7.5 gallons per flush, with low-flow devices that consume 1.6 gallons. Since 1992, Utah law requires the installation of these toilets in new construction and since 1994, federal law prohibits the manufacture of old-style toilets. This change reduces indoor residential water consumption in new construction by an estimated six gpcd¹⁰, but does not affect homes constructed prior to 1992 unless old toilets are replaced. Retrofitting old-style toilets and other water intensive appliances with newer water efficient designs is recognized by many utilities as an effective way to produce water savings. This is accomplished by retrofitting programs or rebates which provide an incentive for residents to remove their old appliances. Because it is fairly easy to estimate the water savings that retrofit, rebate and incentive programs are likely to produce, these programs are a popular method used to help reach water conservation goals.

	In some water systems, finding and repairing leaks may be the most desirable conservation alternative. Water savings from such measures are relatively easy to quantify.

Leak Detection and Repair Programs