ENVS 65 Lecture Notes - Lecture 5: Natural Disaster, Reclaimed Water
Document Summary
It is rare for an urban region to develop rates from scratch since a rate structure already exists. But rate structures are regularly updated and sometimes overhauled. Incentives include the ability to pay less money by using less water, and to get rebates on water-saving appliances or by removing water-demanding landscape. An important concept is the customers" "price elasticity of demand", which is the extent to which customers will use less water as the price of water goes up. Residential (there often are sub-categories like single family dwellings and multiple family dwellings, (apartment buildings)) industrial. Wholesale (outside the service territory, such as a neighboring city) The agency could be required to upgrade certain infrastructure or to provide water to certain uses, or to limit costs to certain customers. Here is a menu of the types of rates utilities typically charge.
