by Doug Wood

Water is not something we can take for granted in Monona. Even in the seemingly water-rich Upper Midwest, water resources are limited, declining, and almost certain to become more valuable – possibly much more valuable – in the future. Conservation helps save those limited resources and reduces our individual water bill (and our sanitary sewer cost, too, because that part of our bill is based on water usage).

Water conservation benefits the community at large, too. Conserving water reduces our water utility’s operating and capital expenses. The less water we consume, the less water the utility pumps, the fewer chemicals it buys, the less electricity it uses, and the longer the equipment lasts. All good.

The Monona Water Utility  (technically a separate entity from the city, but operated by our Public Works staff) is in the process of seeking a 20% water rate increase from the state Public Service Commission (PSC), the state agency that regulates and sets water rates in Wisconsin. The rate increase is necessary primarily because of the cost to replace water mains during road reconstruction, especially Monona Drive (the utility work for Monona Drive is not federally funded).

As part of the formal rate case, the city utility is evaluating a change in the residential rate structure from a “declining block” to a conservation or “inclining block” rate structure.

The declining block rate we use now looks like a declining staircase – as we use more water, the price goes down. With a conservation rate, residential users would pay the lowest rate for the water needed for daily living. As usage climbs, the rate climbs, too. In this simple and direct way, the “inclining block” encourages water conservation. It’s a way utilities across the country are encouraging water conservation.

Conserving water is also the cheapest source of new water supply. Think of it this way: For a water utility, conserving water is like finding a new aquifer – except the well and all the pipes and pumps are already in place.

The Monona Water Utility currently applies the highest rate for the first 7,000 cubic feet of water used per quarter. (For reference, one cubic foot equals 7.48 gallons.) Rates then descend in two tiers for the very largest users. In addition to the charge for water use, service charges take into account the size of your water meter service. (For customers consuming more than 7,000 cubic feet, the rate drops 11% between 7,000 cubic feet and 50,000 cubic feet per quarter. Above 50,000 cubic feet, the rate drops another 18%.)

Statewide, average water consumption is 8.29 cubic feet per day per person, so 7,000 cubic feet is more water than needed for a household of nine people. Very few residential users in Monona would ever exceed 7,000 cubic feet per quarter. An average four-person household would consume a little over 3,000 cubic feet of water per quarter.

In effect, Monona’s rate structure is a flat rate for almost all customers, providing no incentive to conserve water. The last gallon used to sprinkle the lawn (or allowed to run down the street) costs the same as the first gallon used for bathing, washing clothes, or drinking.

Obviously, the devil is in the details and a critical detail is determining the amount of water usage at which the rate should increase. How much water should be sold at the lowest rate? How much should the rate increase as usage increases? Do the conservation rates actually encourage conservation? A number of Wisconsin communities (including Fitchburg, Franklin, Waukesha, Weston, and Allouez) have implemented conservation rates and their experience will no doubt be instructive. Each utility’s situation is different, however, so caution should be used in making direct comparisons.

One point to bear in mind, regardless of the rate structure, the PSC will require a rate that provides adequate revenue for the utility to be financially successful. In other words, the total amount of revenue needed will rise, but that is dictated by the utility’s operating and capital expenses, not the rate structure.

The Monona Sustainability Committee has invited Jeff Ripp, Water Conservation Coordinator for the PSC of Wisconsin to present information about conservation rates at our next meeting at 6 PM on April 21 in the Monona Public Library Community Room (Lower Level). As always, the public is welcome to attend.