Lessons from the California drought: Planning rates and water conservation can protect utilities from lean times ahead.

By the time California entered its fifth year of historic drought last summer, water utilities across the state were dire straits. Statewide conservation orders had succeeded in many areas at reaching their much-needed target reductions, yet water agencies were struggling to meet their operating costs while facing millions in lost revenue.

Planning ahead can be critical to operating through decreases in demand or water use restrictions like those seen in California, especially with drought predictions ahead for states like Virginia and New Jersey. In the Twin Cities of Minnesota, the Metropolitan Council has assembled a suite of programs and practices water suppliers can implement to do just that.

This Water Conservation Toolbox for suppliers deals with the practical need to align rates with revenue, reduce water losses, and develop a water conservation program for your community.

Setting water rate structures that encourage conservation

The Toolbox includes two programs to help utilities set rates that work for water conservation. Learn through videos by the Water Research Foundation, or run calculations for different scenarios through University of North Carolina’s Water Utility Revenue Risk Assessment Tool. The tool allows utilities to calculate how much of revenue is at risk of loss if their customers lower their consumption, providing estimates based on the utility's own rate structure, customer demand profile, and weather conditions.

If you find a rate increase is needed for your utility, see our blog posts on how to lay the groundwork for approval and gaining community buy-in.

Stopping water and energy loss

Programs to audit leaks, recycle and reuse water and reduce energy can all save utilities money during water conservation. The Toolbox provides resources to learn about the close tie between water and energy efficiency at your utility, and how to identify losses. If you see a need for change, the Toolbox can connect you to help like the Water Loss Control Resource Community.

Building a water conservation program

Finally, the Toolbox features a suite of water conservation programs to borrow ideas from. Browse a library of options from rebate and voucher programs to school education from the Alliance for Water Efficiency. And when a change in infrastructure is needed to stop water loss, the U.S. EPA provides a list of resources for financing new water infrastructure in your community.

Getting a head start to avoid disaster

In the height of the California drought in 2016, Water Board chair Feilcia Marcus told the Sacramento Bee that, with the state facing longer, more frequent droughts, local districts need to devise rate structures that take into account prolonged conservation.

“It’s certainly a challenge for some of them, but not one that can’t be overcome,” Marcus said. “The right answer can’t be that we can’t save water in the worst drought in modern history because we haven’t gotten around to changing our rate structures, or because somebody might yell at us.”