Presentation on theme: "California American Water Monterey Supply Project - Scenarios December 11-13, 2012."— Presentation transcript:
California American Water Monterey Supply Project - Scenarios December 11-13, 2012
2 Section I - Rate Impact of Tier 5 usage decrease on lower Tiers Consumption and Revenues in each Rate Tier Residential Revenues by Rate Tier in Monterey Residential Consumption by Rate Tier in Monterey Footnote: based on 2011 data
3 Section I - Rate Impact of Tier 5 usage decrease on lower Tiers Scenario 1: Eliminate 200AF of Demand in Tier 5, Revenue Requirement unchanged: Footnote: Calculation based on Proposed Rate Design. Above scenario assumes 200 AF of usage in Tier 5 is eliminated due to overall reduction of demand. Eliminating 200AF of Demand in Tier 5 with Revenue Requirement unchanged will cause a 16.2% Rate Increase for all Tiers. Loss of Tier 5 Revenue is compensated through Increase in Rates in all Tiers.
4 Section II – Toilet Retrofit Program for Monterey Scenario: Retrofit all residential household toilets in Monterey with 0.8 gallon per flush (gpf) Ultra High Efficiency Toilets: Scenario: Retrofitting all residential household toilets (avg. 2.2 toilets per household) in Monterey with Ultra High Efficiency 0.8 gallon per flush toilets: approx. 35,000 households in Monterey – retrofit would cost around $21 Million ($280 total cost per install) each household would save approximately 4,000 gallons per year Total annual savings: approx. 420 AcreFeet Cost per AcreFoot if program expenditures were capitalized: $7,021 per AcreFoot
5 Section III – Water Demand Price Elasticity Factors Water Demand graphically Residential Water Demand in Monterey: How much indoor and how much outdoor demand is still elastic? Has indoor use neared inelasticity? Conservation programs and practices caused a shift in demand curve Monterey residential water use approx. 60 gal/day per capita Price Quantity Demanded Water Demand Curve Illustrative example Minimum Water Requirement per capita Inelastic Water Demand - less-sensitive to price Device based Programs shift entire demand curve Changes in price cause movement along the demand curve
6 Section III – Water Demand Price Elasticity Factors Literature Review
7 Section IV – Montereys Conservation Program Water Savings and Costs to date Monterey Conservation Program; historical expenses and water savings 2006 to 2011 Footnote: Several conservation outreach and education programs have no AcreFoot Savings values associated with, however, are still believed to produce significant water savings such as public outreach, school programs, etc. Costs do not include labor expenses for conservation staff, admin costs or other outreach expenses.
8 Section V – Portfolio of Options: Cost vs. Yield
9 Section V – Portfolio of Options: Cost vs. Yield (contd.) Monterey Water Supply – Existing and New Sources compared Footnote: Some costs shown are estimates of previously conducted studies reflected at todays costs