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Impact of Drought Restrictions and Conservation on Revenue and Rates

Impact of Drought Restrictions and Conservation on Revenue and Rates . Ullrich Water Treatment Plant. Drought response and conservation lower revenues Treating and delivering less water reduces some costs, such as treatment chemicals and pumping But savings nowhere near lost revenue

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Impact of Drought Restrictions and Conservation on Revenue and Rates

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  1. Impact of Drought Restrictions and Conservation on Revenue and Rates Ullrich Water Treatment Plant • Drought response and conservation lower revenues • Treating and delivering less water reduces some costs, such as treatment chemicals and pumping • But savings nowhere near lost revenue • Treatment plants, pumping stations and other infrastructure must still operate. Water must still be delivered to all customers through underground pipes and to every faucet. • Consequently fixed costs are very high portion of overall costs South Austin Regional Wastewater Treatment Plant

  2. Water Conservation and Drought Response alter traditional financial patterns • $38 million loss in FY10 due to weather conditions, drought restrictions, conservation initiatives and economic conditions $ $ $ $ or

  3. Philosophy behind Austin Water rate structure • Low cost for low use • Safety net for low-income people • Increased per unit price as usage increases (residential sector) • Assumes conservation in revenue projections and budget accordingly • 20% fixed revenues • Scour budget for savings before seeking rate increases

  4. Residential Water Bills 0 – 60,000 Gals.

  5. Enhanced Leak Detection, Leak Response Leak Response Times 24% more leaks fixed in 1 day or less! FY 2014 through Feb. 3 Photo from Austin American-Statesman FY 2006

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