Tucson Rate Impacts of Increased Water Efficiency

Tucson Examines the Rate Impacts of Increased Water Efficiency and Finds Customer Savings

Authors: Candice Rupprecht, Mary M. Allen, and Peter Mayer

Publication: AWWA Journal, Feature Article

Date: January 3, 2020

“To answer one of the most vexing customer questions in the water industry—Why do you ask me to conserve and then raise my rates?—utilities have recently begun conducting avoided-cost analyses. … An avoided-cost analysis considers current and historic population and per capita demand as well as a utility’s current budget, disaggregating them into variable and fixed system costs, and foregone infrastructure and supply acquisition projects.” This AWWA Journal feature article details Tucson Water’s avoided cost analysis finding that the utility’s three decades of water conservation saved the community $416 million in avoided system costs.