# Saving Water and Money at Home in Arizona: Step 1. Understanding Water Rates

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2 of tiered rate structure employs higher per-unit charges as the amount of water consumed increases. Each block represents a volume of water that corresponds to a price tier. Well-designed increasing block rate structures encourage water conservation by allowing households to purchase water for essential uses at an affordable price per unit, and increase the cost of water as the volume increases to discourage non-essential uses. Essential uses include the amount of water that would be necessary to meet basic human needs such as washing, bathing, cooking, and drinking. structures use financial incentives to curb excessive water use by associating higher rates with water use that is considered non-essential for basic human needs. For example, water used to support lush landscaping and swimming pools is typically considered non-essential and is subject to higher usage fees under an increasing block rate structure. Consumers who opt to continue water intensive practices will pay higher prices as the volume consumed triggers the next pricing tier. Most block rate structures have multiple price tiers that apply to essential, excessive, and wasteful consumption. Steeper increments between price tiers create stronger incentives to conserve water. Seasonal rate structures offer further incentives to conserve. Because a majority of the increased water consumption in summer months goes to nonessential uses, an effective seasonally adjusted rate structure targets higher blocks of water usage. The example in Figure 1 shows how a water usage fee can be calculated for a household in the city of Surprise. Calculating water charges for 14,000 gallon use shown in Figure 1: Water usage fee =\$1.60 x (use in Block 1) + \$3.15 x (use in Block 2) + \$3.67 x (use in Block 3) Water usage fee calculation= \$1.60 x (10) + \$3.15 x (4) Total water usage fee = \$28.60 Note: the price for each block is calculated per 1,000 gallons and there is no usage in Block 3. Using the example rate structure above in Figure 1, a household using 14,000 gallons a month would be charged a water usage fee of \$ While reducing their use by 1,000 gallons would save the household \$3.15 on their monthly water bill, making a reduction of 5,000 gallons would drop this user into block 1 rates for all use, reducing the bill by \$14.20 per month. To determine Figure 1: Example of an increasing block rate structure: City of Surprise rate Service Fee = \$19.39 Unit Price (Per 1,000 gallons) Volume (Gallons) Block 1 \$ to 10,000 Block 2 \$ ,001 to 20,000 Block 3 \$3.67 over 20,000 2 The University of Arizona - College of Agriculture and Life Sciences - Cooperative Extension

4 Appendix A Table 1. Water Rates for Single Family Residential Homes with 3/4 inch Meters in the Major Municipalities in Maricopa County and Tucson* Apache Junction City Rate Structure Public/Private Service Fee Private Arizona Water Company \$17.52 Avondale Public \$10.50 Buckeye Public \$13.97 Cave Creek Public \$38.40 Chandler (summer and winter season) Public \$10.11 El Mirage Public \$17.97 Gilbert Public \$14.63 Glendale** Public \$12.30 Plus \$0.41/day Goodyear Public \$10.23 Litchfield Park Mesa Public Paradise Valley Private Liberty Utilities \$10.20 \$21.14 (includes 3,000 gallons) Private EPCOR \$26.16 Peoria Public \$15.54 Usage Fee (price per 1,000 gallons) \$ to 3,000 \$2.85 3,001 to 10,000 \$3.57 over 10,000 \$0.94 1,000 to 4,000 \$1.44 5,000 to 8,000 \$2.16 9,000 to 12,000 \$3.30 over 13,000 \$ to 6,999 \$3.19 7,000 to 10,999 \$ ,000 to 14,999 \$ ,000 to 30,000 \$8.67 over 30,000 \$ to 8,000 \$4.13 8,001 to 20,000 \$ ,001 to 30,000 \$ ,001 to 50,000 \$9.12 over 50,000 \$ to 10,000 \$ ,001 to 20,000 \$ ,001 to 60,000 \$3.09 over 60,000 \$ to 5,000 \$3.55 5,001 to 15,000 \$ ,001 to 25,000 \$4.30 over 25,000 \$ to 10,000 \$ ,001 to 20,000 \$ ,001 to 30,000 \$1.80 over 30,000 \$ to 6,000 \$2.68 7,000 to 15,000 \$ ,000 to 30,000 \$5.27 over 31,000 \$ to 6,000 \$2.36 6,001 to 12,000 \$ ,001 to 30,000 \$5.69 over 30,000 \$1.00 1,000 to 3,000 \$1.91 3,001 to 9,000 \$3.03 over 9,000 \$ to 12,000 \$ ,001 to 24,000 \$4.44 over 24,000 \$ to 15,000 \$ ,001 to 40,000 \$ ,001 to 80,000 \$ ,000 to 400,000 \$3.23 over 400,000 \$1.00 1,000 to 4,999 \$2.59 5,000 to 10,999 \$ ,000 to 20,000 \$4.00 over 20,000 4 The University of Arizona - College of Agriculture and Life Sciences - Cooperative Extension

5 Phoenix City Rate Structure Public/Private Service Fee Seasonally Differentiated Increasing Block Rate Public \$4.45 Queen Creek Public \$18.33 (includes 1,000 gallons) Scottsdale Public \$14.00 Sun City Private EPCOR \$8.78 Surprise Public \$19.39 Tempe (includes Town of Guadalupe)** Tolleson Public \$15.10 (first tier is flat rate) Public \$14.00 Tucson Public \$9.97 Wickenburg Public *Rates are current as of November, 2013 and subject to change. **Inside city limits. \$11.04 (includes 4,000 gallons) Usage Fee (price per 1,000 gallons) \$ to 4,488 (Oct-May) \$4.33 over 4,488 (Dec-Mar) \$5.01 over 4,488 (Apr, May, Oct, Nov) \$ to 7,480 (Jun-Sep) \$5.55 over 7,480 (Jun-Sep) \$1.77 1,000 to 10,000 \$ ,001 to 20,000 \$2.96 over 20,000 \$ to 5,000 \$2.85 5,001 to 12,000 \$ ,001 to 40,000 \$ ,001 to 70,000 \$5.00 over 70,000 \$ to 1,000 \$1.07 1,001 to 3,000 \$1.36 3,001 to 9,000 \$1.65 9,001 to 12,000 \$2.02 over 12,000 \$ to 10,000 \$ ,001 to 20,000 \$3.67 over 20,000 \$ to 8,000 \$2.38 8,001 to 15,000 \$ ,001 to 25,000 \$3.73 over 25,000 \$12.85 for up to 3,000 \$3.72 3,001 to 10,000 \$ ,001 to 30,000 \$4.70 over 30,000 \$ to 7,480 \$2.68 7,481 to 11,220 \$ ,221 to 22,440 \$11.04 over 22,440 \$ to 10,000 \$ ,000 to 20,000 \$2.69 over 20,000 The University of Arizona - College of Agriculture and Life Sciences - Cooperative Extension 5

6 Worksheet 1: Increasing Block Rate Structure Worksheet Using the information in Table 1, you can fill in the blanks of this worksheet using the rate structure for your water provider. The result will be a personalized rate structure for your reference. Service Fee =\$19.39 Unit Price (Per 1,000 gallons) Block 1 \$ to Block 2 \$ to Block 3 \$ to Block 4* \$ to Block 5* \$ to Volume (Gallons) *if your water provider does not include more than 3 blocks, you can ignore block 4 and block 5 Calculating water charges for your use: Water usage fee= Block 1 fee _ Block 1 Use + Block 2 fee _ Block 2 Use + Block 3 fee _ Block 3 Use + Block 4 fee _ Block 4 Use + Block 5 fee _ Block 5 Use Your water usage fee = 6 The University of Arizona - College of Agriculture and Life Sciences - Cooperative Extension

7 Information Sources 2010 Utility Rates Chart. City of Surprise Web. 17 May < Home/View/4577>. A Summary of Water Conservation Programs in Active Management Areas. Arizona Department of Water Resources. N.p., 30 Mar Web. < azwater.gov/azdwr/watermanagement/amas/ documents/03_2007conservsummary.pdf>. Adams, Damian C., Christopher N. Boyer, and Michael D. Smolen. Water Rate Structure: A Tool for Water Conservation in Oklahoma. Oklahoma State University Cooperative Extension. N.p.. Web. < docushare/dsweb/get/document-6510/agec-1017web. pdf>. Chandler Utility Rates. City of Chandler. N.p.. Web. 17 May < aspx?pageid=773>. City of Glendale-Water Billing Rates. City of Glendale. N.p., n.d. Web. 17 May < utilities/documents/waterrates.pdf>. City of Peoria Residential Water Rate Schedule. City of Peoria. N.p.. Web. 17 May < NewSecondary.aspx?id=27446>. Glennon, Robert. Unquenchable America s Water Crisis and What to do About It. Washington, DC: Island Press, Print. McCoy, Kevin. USA TODAY analysis: Water costs gush higher. USA Today 29 Sep 2012, n. pag. Web. 25 Nov < rising-water-rates/ />. Proposed El Mirage Water, Sewer, and Sanitation Rates. City of El Mirage. N.p.. Web. 17 May < cityofelmirage.org/documentcenter/view/9402>. Rates & Tariffs. Paradise Valley District. EPCOR Water. Web. < Rates & Tariffs. Sun City District. EPCOR Water. Web. < Stallworth, Holly. Conservation Pricing of Water and Wastewater. EPA. N.p., 10 April Web. < epa.gov/grants_funding/cwsrf/upload/2006_12_28_ cwfinance_cwsrf_enhancefiles_consrvprice.pdf>. State and County Quickfacts. United States Census Bureau. N.p.. Web. < Town of Buckeye Water and Sewer Rates. Town of Buckeye. N.p.. Web. 17 May < DocumentCenter/Home/View/2192>. Town of Wickenburg Utility Summary. Town of Wickenburg. N.p.. Web. 17 May < documents/37/utility Summary_ pdf>. Utility Billing. City of Tolleson. N.p.. Web. 17 May < Utility Rates & Fees. City of Mesa. N.p.. Web. 17 May < pdf>. Utility Service Rates. Goodyear, Arizona. N.p.. Web. 17 May < Water / Sewer / Solid Waste Rates. Gilbert, Arizona Utilities Department. N.p.. Web. 17 May < gov/utilities/rates.cfm>. Water and Sewer Rates and Current Charges. City of Phoenix. N.p.. Web. 17 May < waterservices/customerservices/rates/>. Water Consumption Fees. City of Tempe. N.p.. Web. 17 May < Water Rates and Fees. Carefree Water Company. N.p.. Web. 17 May < waterratesandfees.html>. Water Rates and Fees. Town of Queen Creek. N.p.. Web. 17 May < water/water-rates-and-fees>. Water Rates and Tariffs. Litchfield Park, AZ. Liberty Water. Web. 17 May < files/lpsco_customer_rates.pdf>. Water Rates-General Service. Arizona Water Company. N.p.. Web. 17 May < pdf>. Water Rates Schedule. City of Scottsdale. N.p.. Web. 17 May < Website/water/Rates \$!26 Fees/2012WaterRates.pdf>. Watering the Sun Corridor. Arizona State University Morrison Institute, n.d. Web. < default/files/content/products/sustphx_watersuncorr. pdf>. Waters, Summer, and Haley Paul. Using Rainwater Harvesting in Urban Landscapes: Quick Guide for Maricopa County. University of Arizona College of Agriculture and Life Sciences. N.p., n.d. Web. < az1566.pdf>. Watersense. United States Environmental Protection Agency. N.p.. Web. < What You Can Do. SRP. N.p.. Web. 15 October < togetherweconserve.com/whatyoucando.aspx> The University of Arizona - College of Agriculture and Life Sciences - Cooperative Extension 7

8 COLLEGE OF AGRICULTURE AND LIFE SCIENCES COOPERATIVE ETENSION The University of Arizona College of Agriculture and Life Sciences Tucson, Arizona Summer Waters Assistant Agent, Water Resource Ronald J. Klawitter Graduate Assistant, Agric. & Resource Economics Haley Paul Water Conservation Specialist, Town of Gilbert Jillian Hamilton Green Fund Extern in 2012 Contact: Summer Waters This information has been reviewed by University faculty. cals.arizona.edu/pubs/consumer/az1614.pdf Other titles from Arizona Cooperative Extension can be found at: cals.arizona.edu/pubs Any products, services or organizations that are mentioned, shown or indirectly implied in this publication do not imply endorsement by The University of Arizona. Issued in furtherance of Cooperative Extension work, acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture, Jeffrey C. Silvertooth, Associate Dean & Director, Extension & Economic Development, College of Agriculture Life Sciences, The University of Arizona. The University of Arizona is an equal opportunity, affirmative action institution. The University does not discriminate on the basis of race, color, religion, sex, national origin, age, disability, veteran status, or sexual orientation in its programs and activities. 8 The University of Arizona - College of Agriculture and Life Sciences - Cooperative Extension

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