Project #5327

Reforming the Water Utility Business Model to Respond to and Better Incentivize Demand Reduction

$145,505
In Progress
Principal Investigator
Andrew
Morris
Research Manager
Sydney Samples
Contractor
Alliance for Water Efficiency
Water Demand & Forecasting
Water Use & Efficiency
Utility Finance

Abstract

Reductions in water use related to water efficiency, wet or cool conditions, stable or declining population, and other factors reduce revenues, posing challenges for the traditional utility business model. The main objective of this project is to identify and recommend new and updated strategies for pricing and rate design, financial policies and practices, planning approaches, and new utility services, that effectively align revenue stability, supply reliability, water-use efficiency, and demand reduction.