A Menu of Demand Side Initiatives for Water Utilities

1. A Menu of Demand Side Initiatives for Water Utilities An Overview of the Process Eric CallistoPublic Service Commission of Wisconsin 608-266-1262 Eric.Callisto@psc.state.wi.us

2. A Menu of Demand Side Initiatives for Water Utilities • What is this all about? • Why now? • Why water utilities? • Who participated in preparing the report? • What are the options and how do they affect water utilities? • What is next?

3. What? • Governor Doyle’s Conserve Wisconsin Agenda • Launched in August 2005 • Strategic and important step to ensure the integrity and protection of our water supply • The Agenda/Initiative • Process: Water Conservation Symposium – May 23, 2006 • Product: Report to Governor Doyle with a menu of demand side initiatives for water utilities

4. Why Now?Converging Forces • 2003 WI Act 310: Groundwater Protection Law • Begins to manage groundwater quantity • Conservation elements • Regional Great Lakes Agreement • Council of Great Lakes Governors Annex 2001 • Annex Implementing Agreements – Adopt legislation for WI to join nine jurisdictions in managing the Great Lakes • Statewide Comprehensive Water Conservation Plan • Legislative Council Study Committee meeting on Great Lakes Water Resources Compact • Changing values, perceptions and attitudes • Nation’s water resources and public policy to address them

5. Why Water Utilities? • Among largest suppliers of water • Account for significant portion of all water withdrawals • Jointly regulated by the PSC and DNR • All sources of supply ultimately to be considered

6. Water Consumption Status of groundwater quantity in Wisconsin-1997

7. Changing Philosophy? • Water utilities have been viewed as the distributor of all clean (drinking quality) water needed to meet demand • This role is expanding to a much bigger role • Manager, guardian and protector of our waters

8. Stakeholders • Participants in the initiative included: • Public Service Commission of Wisconsin • Department of Natural Resources • Representatives of the water industry • Regional government • Environmental groups • Agricultural and industrial

9. Demand Side Initiatives • Demand Side Initiatives Management (DSM) is conserving water by reducing customer demand • Programs and tools to encourage consumers to modify their level and pattern of usage • Objective: Provide a cost-effective supply while deferring the need to develop additional supply, thereby protecting water resources and ensuring sustainability

10. The Menu of Strategies • Water Conservation Education • Water Use Accountability • Water Saving Hardware and Other Physical Restrictions • Water Rates and Related Issues • Water Reuse/Recycling

11. Water Conservation Education • Education promotes understanding and influences behavior • Conservation and efficiency education • Local and state conservation messages • Water bills-usage history • Providing specific information on water saving technology and steps • State water efficiency coordinator • Maps

12. Water Use Accountability:Tracking Water Sales and Use • Metering water use • Submetering • Meter testing • Water use reporting • Water audits • Leak detection • Regulatory oversight • Benchmarks • Government water efficiency planning • Consolidation of water and wastewater operations

13. Water-Saving Hardware & Other Physical Restrictions • Low-flow toilets and urinals • Showerheads and faucets • Appliances-dishwashers and clothes washers • Pre-rinse spray valves • Rain sensors and other auto-irrigation restrictors • Sprinkling ordinances • Porous pavement • Building codes

14. Water Rates and Related Issues • Sending appropriate price signals • Class rates • Declining block rates • Flat rates • Inclining block rates • Seasonal rates • Excess use rates • Lifeline rates • Rebates, promotions and other financial incentives

15. Water Reuse and Recycling • Meeting needs with the appropriate quality of water • Reuse: Use of treated wastewater or reclaimed water • Recycle: Recapture and redirect into the use scheme

16. Additional Considerations:Issues Outside the Scope of the Charge • Revisions to state plumbing code • Synergies related to water and energy efficiency planning • Consolidation of state regulation or local water and wastewater management • Mandatory water conservation planning • Opting out of the local water utility • Water intensive industries – locating • Tracing water use by watershed • Track implementation of conservation programs • Conservation potential assessment

17. Next Steps • Get the word out: Promote water conservation activities • One size does not fit all, but everyone can benefit • Benchmark water use data • PSC and DNR gather base line water usage by watershed • Statewide water conservation education program • Participate in efforts to protect Wisconsin’s water supply for the long term • Groundwater Advisory Committee addressing conservation strategies for Groundwater Management Areas • Legislative Council study committee drafting legislation on the Annex Implementing Agreements • Council of Great Lakes Governors drafting of regional goals for water conservation and efficiency.