Tiered Detroit bill plan rewards low water use

[MSUguy]

Long plagued by delinquency, the city’s water department is aiming to be one of few in the nation to give customers who use the least amount of water lower rates.

A preliminary plan calls for a tiered billing system at a lower rate for the first 1,500 gallons used per month — the minimum required to meet United Nations standards for basic hygiene and safety for a family of three. Usage beyond that would be charged at a higher rate, said Marcus Hudson, Detroit Water and Sewerage Department’s chief financial officer.

The water department has spent the last year working on the concept recommended by an expert water affordability panel in the wake of an aggressive shutoff campaign in the city that riled human rights advocates and sparked a legal battle.
The new rate structure would apply to all of DWSD’s customers from commercial to industrial, residential and government.

Very simply, we’re thinking about it in terms of low water users and high water users,” Hudson told The Detroit News.

The model — known as inclining block rates — could lower water rates for more than 90 percent of Detroit’s residential customers, according to DWSD’s preliminary analysis, Hudson said.

http://www.detroitnews.com/story/new...ater/97431418/

[MikeyinBrooklyn]

Off-hand, I can't see why this wouldn't be a good idea. Rewarding efficiency is a good idea.

[Johnnny5]

I think it's a great idea, but if they're cutting the rates at the low end it has to be made up somewhere. I'm guessing there might be a few more vacant car washes around next year.

[Jason]

I'm glad that the water bill issue actually led to something good. And not just a bandaid to quiet people down, but something substantive.

[One Shot]

Doesn't this apply today? Use less water, pay a cheaper bill! This reminds me of DTE preaching how to use less of their product they make money selling you. And then when you do become efficient they raise the rates and your right back to the same bill. Works out for them as they can postpone upgrading the grid for now?

[JBMcB]

Doesn't this apply today? Use less water, pay a cheaper bill! This reminds me of DTE preaching how to use less of their product they make money selling you. And then when you do become efficient they raise the rates and your right back to the same bill.

Water utilities do the same thing. Back when water saving gear was becoming required [[low-flow toilets, shower heads, faucets, etc...) in the 90's everyone's rates went up to compensate for the reduced revenue.

[MikeyinBrooklyn]

It is truly a wondrous site, to see a nugget of seemingly positive information get torn to shreds as an example of corporate greed! Oops. That's right. We, the people of Detroit, own said corporation.

Maybe we should have this crazy option: pay your water bill in full & on time, or your lose your water. Oh, wait. We tried that. So maybe its a good idea to just charge less to use less, so those bills can be made a little cheaper for those who can't pay very much.

[Wesley Mouch]

Water utilities do the same thing. Back when water saving gear was becoming required [[low-flow toilets, shower heads, faucets, etc...) in the 90's everyone's rates went up to compensate for the reduced revenue.

Rates would have gone up, but average bill should not have gone up, since consumption was down.

Rates don't matter. Total bills matter.

It makes sense to have a terraced rate, where your basic consumption needs are priced somewhat less than the unit cost for those who consume more than average. It rewards efficiency. And that's good for everyone. If someone wants to water their lawn daily in the summer -- that's fine -- so long as they can afford to contribute to the larger-sized distribution network costs.

Libertarian Mouch doesn't mind some socialism.