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AWWA JAW69826

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AWWA JAW69826 Journal AWWA - Water Conservation Made Legal: Water Budgets and California Law

Journal Article by American Water Works Association, 04/01/2009

Hildebrand, Mark; Gaur, Sanjay; Salt, Kelly J.

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California is among the most progressive statesregarding cost-of-service requirements for waterrates. With the increasing need for water conservation,and increasing popularity of water budget ratestructures, recent changes to California laws shouldbe of interest to water utility managers.Water rates are regulated at the state level. Theevolution of these regulations in California created asituation in which utility managers were not certainif conservation-oriented rate structures would beupheld in court. The recent passage of Assembly Bill2882 has lifted this uncertainty and set a precedentfor other states. The growing popularity of waterbudget rate structures may accelerate even morenow that they have been validated by Californialawmakers. Allocation-based inclining-block rateswere until recently infeasible because of the datamanagement and lack of political will. The tide haschanged in favor of such rates with the developmentof new information management tools, the publicawareness of on-going water resource issues, and thegreen light from lawmakers. Includes 3 references, figures.