BMP 1 Utility Operations Programs

Water utilities throughout California are implementing water conservation programs and providing services to the customers they serve. There are four subcategories that comprise signatory utility operation program responsibilities.

1.1 OPERATIONS PRACTICES

As amended December 10, 2008

This practice will outline several key actions that utilities shall take to better enable conservation program implementation, to supplement conservation incentives with regulations where appropriate, and to assist one another through the wholesaler-retailer relationship.

A. Implementation

Implementation shall consist of at least the following actions:

1) Conservation Coordinator (formerly BMP 12) Designate a person as the agency’s responsible conservation coordinator for program management, tracking, planning, and reporting on BMP implementation.

2) Water waste prevention (formerly BMP 13) a) New development Enact, enforce, or support legislation, regulations, ordinances, or terms of service that (1) prohibit water waste such as, but not limited to: single- pass cooling systems; conveyer and in-bay vehicle wash and commercial laundry systems which do not reuse water; non- recirculating decorative water fountains and (2) address irrigation, landscape, and industrial, commercial, and other design inefficiencies.

b) Existing users Enact, enforce, or support legislation, regulations, ordinances, or terms of service that prohibit water waste such as, but not limited to: landscape and irrigation inefficiencies, commercial or industrial inefficiencies, and other misuses of water.

c) Water shortage measures Enact, enforce, or support legislation, regulations, ordinances, or terms of service that facilitate implementation of water shortage response measures.

3) Wholesale agency assistance programs (formerly BMP 10) This section addresses assistance relationships between regional wholesale agencies and intermediate wholesale agencies as well as between wholesale agencies and retail agencies.

a) Financial investments and building partnerships When mutually agreeable and beneficial to a wholesaler and its retail agencies, a wholesaler will provide financial assistance and help build partnerships to accomplish conservation. Wholesale water suppliers will consider avoided capital costs when making financial investments and build regional partnerships to advance water conservation efforts and effectiveness. Where applicable, intermediate wholesale water suppliers that receive conservation-related financial incentives from regional wholesalers will pass through eligible financial incentives to retail agencies operating programs at the retail level.

b) Technical support When requested, wholesale water agencies will provide conservation- related technical support and information to retail agencies they serve. Support and information will include, but will not be limited to: workshops and support advice addressing conservation program planning, design, implementation, and evaluation.

c) Program management When mutually advantageous, wholesale and retail water agencies will join together to plan, design, implement, manage, and evaluate regional conservation programs.

When mutually agreeable and beneficial, the wholesale agency or another lead regional agency will operate all or part of the conservation program; if the wholesale agency or other lead regional agency operates all or part of a program, then it may, by mutual consent with the retail agency, assume responsibility for CUWCC reporting for funded BMPs; under this arrangement, a wholesale agency or other lead regional agency may aggregate all or portions of the reporting and coverage requirements of all retail agencies joining into the mutual consent.

d) Water shortage allocations Wholesale agencies shall pursue water shortage allocation policies or plans which minimize disincentives to long-term water conservation, and encourage and reward investments in long-term conservation shown to advance regional water supply reliability and sufficiency.

e) Non-signatory reporting To the extent possible, wholesale water agencies will provide reports on BMP implementation within their service area by retail water agencies that are not signatories to the MOU.

f) Encourage CUWCC membership Wholesale agencies will encourage all of their retail agencies to become MOU signatories, provide information to assist the CUWCC in recruitment targeting, and may assist in paying CUWCC dues for their retail agencies.

B. Implementation Schedule

Implementation shall commence no later than July 1 of the first year following the latter of either: 1) the year the agency signed or became subject to the MOU, or 2) the year this Exhibit is amended.

C. Coverage Requirements

Coverage shall consist of:

1) Conservation Coordinator Staff and maintain the position of trained conservation coordinator, or equivalent consulting support, and provide that function with the necessary resources to implement BMPs.

2) Water waste prevention Water Agency shall do one or more of the following: a. Enact and enforce an ordinance or establish terms of service that prohibit water waste b. Enact and enforce an ordinance or establish terms of service for water efficient design in new development c. Support legislation or regulations that prohibit water waste d. Enact an ordinance or establish terms of service to facilitate implementation of water shortage response measures e. Support local ordinances that prohibit water waste f. Support local ordinances that establish permits requirements for water efficient design in new development.

3) Wholesale agency programs

a) Financial investments and building partnerships When mutually agreeable and beneficial to a wholesaler and its retail agencies cost-effectiveness assessments, including avoided cost per acre- foot, will be completed for each BMP the wholesale agency is potentially obligated to support. The methodology used will conform to the Council standards and procedures, and the information reported will be sufficient to permit independent verification of the calculations and of any exemptions claimed on the cost-effectiveness grounds.

b) Technical support When requested provide technical support, incentives, staff or consultant support, and equivalent resources to retail members to assist, or to otherwise support, the implementation of BMPs.

c) Program management When mutually agreeable and beneficial to a wholesaler and its retail agencies offer program management and BMP reporting assistance to its retailers and the results of the offer will be documented. It is recognized that wholesale agencies have limited control over retail agencies that they serve and must act in cooperation with those retail agencies on implementation of BMPs. Thus, wholesale agencies cannot be held responsible for levels of implementation by individual retailers in their wholesale service areas.

d) Water shortage allocation Water shortage allocations plans or policies will encourage and reward investments in long-term conservation.

e) Non-signatory reporting Wholesale water agencies will report on non-signatory BMP implementation, when possible.

4) Encourage CUWCC membership Wholesale agencies will encourage CUWCC membership and offer recruitment assistance.

D. Requirements for Documenting BMP Implementation

1) Conservation coordinator Provide the contact information for the conservation coordinator, or consultant assigned, and verification that the position is responsible for implementing the tasks identified in Section A.1).

2) Water waste prevention Provide the following: a) A description of, or electronic link to, any ordinances or terms of service adopted by water agency to meet the requirements of this BMP. b) A description of, or electronic link to, any ordinances or requirements adopted by local jurisdictions or regulatory agencies with the water agency’s service area. c) A description of any water agency efforts to cooperate with other entities in the adoption or enforcement of local requirement consistent with this BMP. d) A description of agency support positions with respect to adoption of legislation or regulations consistent with this BMP.

3) Wholesale agency assistance programs a) Financial investments and building partnerships List the total monetary amount of financial incentives and equivalent resources provided to retail members to assist with, or to otherwise support, implementation of BMPs, subtotaled by BMP. List regional partnerships developed to encourage resource conservation and maximize economies of scale benefits.

b) Technical support Supply a summary of types of technical support provided to retail agencies.

c) Program management If the wholesale agency has assumed reporting responsibility, list the programs managed on behalf of its retail agencies.

d) Water shortage allocation If a water shortage allocation plan or policy has been developed, provide the date of adoption and electronic link to the document or hardcopy.

e) Non-signatory reporting Receipt of reports

4) Encourage CUWCC membership List of efforts to recruit retailers and amount of dues paid on behalf of retail agencies.

E. Water Savings Assumptions

Not quantified. However, water savings may be realized in the following ways:

1) Wholesalers may use the Council’s Cost and Savings document to assess the total amount of water savings achieved by each wholesaler-supported BMP. Other statistically validated sources may be also used to demonstrate water savings.

2) Water savings from enforcement of legislation and regulations will be projections developed based on anticipated savings from device(s) applied to the population subject to the regulation(s).

3) Water savings from implementation of water waste prevention measures.

1.2 WATER LOSS CONTROL

Formerly BMP 3, as amended September 16, 2009

The goals of modern water loss control methods include both an increase in water use efficiency in the utility operations and proper economic valuation of water losses to support water loss control activities. In May 2009 the American Water Works Association (AWWA) published the 3rd Edition M36 Manual Water Audits and Loss Control Programs. BMP 1.2 will incorporate these new water loss management procedures and apply them in California. Agencies are expected to use the AWWA Free Water Audit Software (“AWWA Software”) to complete their standard water audit and water balance.

A. Implementation

Implementation shall consist of at least the following actions:

1) Standard Water Audit and Water Balance. All agencies shall quantify their current volume of apparent and real water loss. Agencies shall complete the standard water audit and balance using the AWWA Water Loss software to determine their current volume of apparent and real water loss and the cost impact of these losses on utility operations at no less than annual intervals.

2) Validation. Agencies may use up to four years to develop a validated data set for all entries of their water audit and balance. Data validation shall follow the methods suggested by the AWWA Software to improve the accuracy of the quantities for real and apparent losses.

3) Economic Values. For purposes of this BMP, the economic value of real loss recovery is based upon the agency’s avoided cost of water as calculated by the Council’s adopted Avoided Cost Model or other agency model consistent with the Council’s Avoided Cost Model.

4) Component Analysis. A component analysis is required at least once every four years and is defined as a means to analyze apparent and real losses and their causes by quantity and type. The goal is to identify volumes of water loss, the cause of the water loss and the value of the water loss for each component. The component analysis model then provides information needed to support the economic analysis and selection of intervention tools. An example is the Breaks and Background Estimates Model (BABE) which segregates leakage into three components: background losses, reported leaks and unreported leaks.

5) Interventions. Agencies shall reduce real losses to the extent cost-effective. Agencies are encouraged to refer to the AWWA’s 3rd Edition M36 Publication, Water Audits and Loss Control Programs (2009) for specific methods to reduce system losses.

6) Customer Leaks. Agencies shall advise customers whenever it appears possible that leaks exist on the customer’s side of the meter.

B. Implementation Schedule

1) For agencies signing the MOU prior to December 31, 2008, implementation shall commence no later than July 1, 2009.

a) July 1, 2009 through June 30, 2010 will be the first year of implementation;

b) Agencies shall provide its first full BMP 1.2 report by December 1, 2010 for years 2008-2009 and 2009-2010;

2) Agencies signing the MOU after December 31, 2008, implementation shall commence no later than July 1 of the year following the year the agency signed the MOU.

a) Agencies shall provide a full BMP 1.2 report for the first reporting period after implementation and for each reporting year thereafter.

3) A benchmark for the performance indicator in terms of water loss standards will be determined after the first 4 years data collected based upon the data reported by agencies. The performance indicator and benchmark; will be voted upon by the Council by year 6 of this revision. Ongoing data collection and data reporting requirements will be established as part of this process.

C. Coverage Requirements

1) Agencies to compile the standard water audit and balance annually using the AWWA Software. Beginning in the 2nd year of implementation agencies to test source, import, and production meters annually.

2) Agencies shall improve the data accuracy and data completeness of the standard water balance during the first four years of implementation. Agencies shall achieve a Water Audit Data Validity score of 66 or higher using the AWWA software no later than the end of the first four year period; and shall achieve data validity Level IV no later than the end of the 5th year of implementation. Estimations for data that are not directly measured should be improved using the methods outlined by the AWWA.

3) Agencies shall seek training in the AWWA water audit method and component analysis process (offered by CUWCC or AWWA) during the first four years of BMP implementation. They shall complete a component analysis of real losses by the end of the fourth year, and update this analysis no less frequently than every four years.

4) Beginning in the fifth year of implementation, through the tenth year of implementation, agencies shall demonstrate progress in water loss control performance as measured by the AWWA software real loss performance indicator "gallons per service connection per day;" "gallons per mile of mains per day;" or other appropriate indicator by one of the following:

a) Achieving a performance indicator score less than the agency's score the previous year;

b) Achieving a performance indicator score less than the average of the agency's scores for the previous three years; or

c) Achieving a performance indicator score in the top quintile (20%) of all signatory agencies reporting such performance indicator with a Data Validity Level IV; or ;

d) In year 6 and beyond reducing real losses to or below the benchmark value determined in the Council’s process referenced in section B3.

5) Agencies shall repair all reported leaks and breaks to the extent cost effective. By the end of the second year, agencies shall establish and maintain a record-keeping system for the repair of reported leaks, including time of report, leak location, type of leaking pipe segment or fitting, and leak running time from report to repair. By the end of the fourth year, agencies shall include estimated leakage volume from report to repair, and cost of repair (including pavement restoration costs and paid-out damage claims, if any).

6) Agencies shall locate and repair unreported leaks to the extent cost effective.

D. Requirements for Documenting BMP Implementation

1) Agency shall submit the completed AWWA Standard Water Audit and Water Balance worksheets in the BMP 1.2 report form every reporting period.
2) For each reporting period, agency shall keep and make available validation for any data reported.
3) Agency shall maintain in-house records of audit results, methodologies, and worksheets for each completed audit period.
4) Agency keeps records of each component analysis performed, and incorporates results into future annual standard water balances.
5) Agency, for the purpose of setting the Benchmark:

a) keeps records of intervention(s) performed, including standardized reports on leak repairs, the economic value assigned to apparent losses and to real losses, miles of system surveyed for leaks, pressure reduction undertaken for loss reduction, infrastructure rehabilitation and renewal, volumes of water saved, and costs of intervention(s); and

b) prepares a yearly summary of this information for submission to the Council, during years two through five of implementation, unless extended by the Council.

E. Water Savings Assumptions

To Be Determined

1.3 METERING WITH COMMODITY RATES FOR ALL NEW CONNECTIONS AND RETROFIT OF EXISTING CONNECTIONS

Formerly BMP 4, as Amended March 14, 2007

A. Implementation

For consistency with California Water Code (Section 525b), this BMP refers to potable water systems. A water meter is defined as a devise that measures the actual volume of water delivered to an account in conformance with the guidelines of the American Water Works Association. Implementation shall consist of at least the following actions:

1) Require meters for all new service connections.

2) Establish a program for retrofitting existing unmetered service connections.

3) Read meters and bill customers by volume of use.

a) Establish and maintain billing intervals that are no greater than bi-monthly (every two months) for all customers.

b) For each metered connection, perform at least five actual meter readings (including remotely sensed) per twelve month period.

4) Prepare a written plan, policy or program that includes:

a) A census of all meters, by size, type, year installed, customer class served and manufacturer’s warranty accuracy when new;

b) A currently approved schedule of meter testing and repair, by size, type and customer class;

c) A currently approved schedule of meter replacement, by size, type, and customer class; and

5) Identifying intra- and inter-agency disincentives or barriers to retrofitting mixed use commercial accounts with dedicated landscape meters, and conducting a feasibility study(s) to assess the merits of a program to provide incentives to switch mixed use accounts to dedicated landscape meters.

B. Implementation Schedule

1) Agencies signing the MOU prior to December 31, 1997, shall:

a) Initiate volumetric billing for all metered customers no later than July 1, 2008; and

b) Complete meter installation for all connections no later than July 1, 2009.

2) Agencies signing the MOU after December 31, 1997, shall:

a) Initiate volumetric billing for all metered customers no later than July 1, 2008 or within one year of signing the MOU if later than July 1, 2008; and

b) Complete meter installation for all service connections no later than July 1, 2012 or within six years of signing MOU, but in no case later than one year prior to the requirements of state law.

3) For unmetered service areas newly acquired or newly operated by otherwise metered agencies, meter installation shall be completed in these service areas within six years of the acquisition or operational agreement.

4) A feasibility study examining incentive programs to move landscape water uses on mixed-use meters to dedicated landscape meters to be completed by the end of Year Four following the date implementation was to commence.

5) A written plan, policy or program to test, repair and replace meters [see Section A(4) above] shall be completed and submitted electronically by July 1, 2008 or within one year of signing the MOU if later than July 1, 2008, whichever is later.

C. Coverage Requirements

100% of existing unmetered accounts to be metered and billed by volume of use within above specified time periods. Service lines dedicated to fire suppression systems are exempt from this requirement.

D. Requirements for Documenting BMP Implementation

1) Confirmation that all new service connections are metered and are being billed by volume of use and provide:

a) Number of metered accounts;

b) Number of metered accounts read;

c) Number of metered accounts billed by volume of use;

d) Frequency of billing (i.e. six or twelve times per year) by type of metered customer (e.g. single family residential, multiple family residential, commercial, industrial, and landscape irrigation); and

e) Number of estimated bills per year by type of metered customer (e.g. single family residential, multiple family residential, commercial, industrial, and landscape irrigation) vs. actual meter readings.

2) Number of unmetered accounts in the service area. For the purposes of evaluation, this shall be defined as the baseline meter retrofit target, and shall be used to calculate the agency’s minimum annual retrofit requirement.

3) Number of unmetered service connections retrofitted during the reporting period.

4) Estimated number of CII accounts with mixed-use meters.

5) Number of CII accounts with mixed-use meters retrofitted with dedicated irrigation meters during reporting period.

E. Criteria to Determine BMP Implementation Status

1) Agency with existing unmetered service connections has completed a meter retrofit plan by the end of Year Two following the date implementation was to commence.

2) Agency has completed a feasibility study examining incentive programs to move landscape water uses on mixed-use meters to dedicated landscape meters by the end of Year Two following the date implementation was to commence.

3) Agency with existing unmetered service connections is on track to meter these connections during the schedule shown in Section B. An agency will be considered on track if the percent of unmetered accounts retrofitted with meters equals or exceeds the following:

Target Dates for “On Track” Compliance with BMP 4
Percent of unmetered accounts retrofitted Agency signed the MOU prior to December 31, 1997
10 percent December 31. 2000
24 percent December 31, 2002
42 percent December 31, 2004
64 percent December 31, 2006
90 percent December 31, 2008
100 percent July 1, 2009
Target Dates for “On Track” Compliance with BMP 4
Percent of unmetered accounts retrofitted All agencies signing the MOU after 1997
20 percent December 31, 2004
40 percent December 31, 2006
60 percent December 31, 2008
80 percent December 31, 2010
100 percent July 1, 2012

4) Agency bills metered customers at least as often as bimonthly within four years.

5) Agency reads meters and bills metered customers using volumetric rates.

6) Agency has completed a written plan, policy or program to test, repair and replace meters.

F. Water Savings Assumptions

Assume meter retrofits and volumetric rates combined will result in a 20% reduction in demand for retrofitted accounts.

G. Commitment to Further Review

Within three years from the date this BMP revision is adopted, the CUWCC will complete an evaluation of the potential water use efficiency impacts and cost-effectiveness of the following for consideration as future BMP revision(s):

1) Criteria for meter testing, repair, replacement and accuracy;

2) Transition to installing automated meter reading (AMR) technologies; and

3) Transition to monthly billing schedules for all accounts.

1.4 RETAIL CONSERVATION PRICING

Formerly BMP 1.4, as Amended June 13, 2007, June 9, 2010, and June 22, 2015

Part I - Retail Water Service Rates

A. Implementation

BMP 1.4 promotes water conserving retail water rate structures. BMP 1.4 recognizes that each agency or water enterprise fund has a unique rate setting system and history. When creating a rate case, professional judgments are made to determine whether costs are accounted to a variable or fixed cost center by the staff of the agency. The final water rate case is an accumulation of all the decisions and judgments made by staff and supplemented by the financial projections leading an agency to establish its final water rate recommendation. BMP 1.4 is not intended to supplant this process, but rather to reinforce the need for Water Agencies to establish a strong nexus between volume-related system costs and volumetric commodity rates.

In Bighorn-Desert View Water Agency v. Virjil the California Supreme Court applied Proposition 218’s* provisions embodied in Articles XIII C and D of the California Constitution to ongoing water service. In addition, Article XIII D, Section 6 imposes procedural and substantive requirements on new or increased fees or charges for on-going water service. The Council considers the conservation principles of BMP 1.4 to be compatible with the cost of service requirements of Proposition 218. However, should a case arise in which a Water Agency’s good faith efforts were unable to meet BMP 1.4’s requirements due to legal constraints (e.g., Proposition 218), this would be grounds for exemption, as specified in MOU Section 4.5.

Definition: Conservation pricing provides economic incentives (a price signal) to customers to use water efficiently. Because conservation pricing requires a volumetric rate, metered water service is a necessary condition of conservation pricing. Unmetered water service is inconsistent with the definition of conservation pricing.

Conservation pricing requires volumetric rate(s). While this BMP defines a minimum percentage of water sales revenue from volumetric rates, the goal of this BMP is to recover the maximum amount of water sales revenue from volumetric rates that is consistent with utility costs (which may include utility long- run marginal costs), financial stability, revenue sufficiency, and customer equity. In addition to volumetric rate(s), conservation pricing may also include one or more of the following other charges:

1) Service connection charges designed to recover the separable costs of adding new customers to the water distribution system.
2) Monthly or bimonthly meter/service charges to recover costs unrelated to the volume of water delivered or new service connections and to ensure system revenue sufficiency.
3) Special rates and charges for temporary service, fire protection service, and other irregular services provided by the utility.

The following volumetric rate designs are potentially consistent with the above definition:

1) Uniform rate in which the volumetric rate is constant regardless of the quantity consumed.

2) Seasonal rates in which the volumetric rate reflects seasonal variation in water delivery costs.

3) Tiered rates in which the volumetric rate increases as the quantity used increases.

4) Allocation-based rates in which the consumption tiers and respective volumetric rates are based on water use norms and water delivery costs established by the utility.

Adequacy of Volumetric Rate(s): A retail agency’s volumetric rate(s) shall be deemed sufficiently consistent with the definition of conservation pricing when it satisfies at least one of the following three options.

Option 1: Let V stand for the total annual revenue from the volumetric rate(s) and M stand for total annual revenue from customer meter/service (fixed) charges, then:

This calculation shall only include utility revenues from volumetric rates and monthly or bimonthly meter/service charges. It shall not include utility revenues from new service connection charges; revenue from special rates and charges for temporary service, fire protection, or other irregular services; revenue from grants or contributions from external sources in aid of construction or program implementation; or revenue from property or other utility taxes.

Option 2: Use the rate design model included with the Municipal Water and Wastewater Rate Manual published by the Canadian Water & Wastewater Association with the signatory’s water system and cost information to calculate V’, the uniform volume rate based on the signatory’s long-run incremental cost of service, and M’, the associated meter charge. [Let HCF be annual water delivery (in hundred cubic feet).] A signatory’s volumetric rate(s) shall be deemed sufficiently consistent with the definition of conservation pricing if:

The rate design model can be downloaded at http://www.cuwcc.org/resource-center/technical-resources/bmp-tools.aspx.

This calculation shall only include utility revenues from volumetric rates and monthly or bimonthly meter/service charges. It shall not include utility revenues from new service connection charges; revenue from special rates and charges for temporary service, fire protection, or other irregular services; revenue from grants or contributions from external sources in aid of construction or program implementation; or revenue from property or other utility taxes.

The following text, adding “Option 3,” was adopted by Council members on June 22, 2015. This option will be in effect from July 1, 2015, through June 30, 2017. On July 1, 2017, Option 3 will end and only Options 1 and 2 will be effective.

Option 3: A utility that chooses to report using this Option 3 will be considered “on track” for BMP 1.4, Part 1, if it has a score of at least 26 points from the three-section retail conservation pricing matrix, set out below. The 26 points can be earned from any combination of the points awardable in any of the three sections; there is no “minimum point” requirement for any one individual section. In calculating a utility’s matrix points, the following definitions and requirements apply.

• A seasonal rate is a higher unit cost for water usage during a utility’s peak demand season. A rate design that reduces the unit cost of water during the peak season, either through reduced rates or through increased volumes at a fixed or flat rate, does not qualify for points in Section 1.0 of Option 3.

• A minimum volume, billed as part of a fixed charge, qualifies for points in Section 1.0 of Option 3, if the minimum volume is limited to amounts that all customers are likely to use in a billing period, e.g., ≤ 4 units per month. However, any water use apportioned to a fixed charge does not qualify as a tier in the rate structure.

• A unit is defined as the billing metric for volume of water, i.e., 1 hcf, 1 kgal, etc.

• For tiered rates, the commodity charges that apply to consumption in each tier (or “block”) are ascending; each higher tier must have a higher commodity charge than the tier immediately preceding it.

• Option 3 is not applicable to any dedicated fire sprinkler or fire-fighting service connections.

Section 1.0 - Retail Water Rate Structure
 % of Water Delivered Uniform Two Tiers/ Seasonal Three or More Tiers/Allocation
SFR 1 3 5
MFR 1 3 5
CII 1 3 5
Dedicated Irrigation 1 3 5
Section 2.0 - Proportionality Test
Proportionality Score 1.2-1.29 1.3-1.39 1.4-1.49 1.5-1.59 1.6-1.69 1.7-1.79 1.8-1.89 1.90-1.99 2.0-2.09 >2.1
Points 4 6 8 10 12 14 16 18 20 23
Section 3.0 - Retail Conservation Pricing Enhancements
3.1 Billing Points
3.1.1 Billing frequency Utility provides monthly billing for one or more customer classes. 1
3.1.2 Bill format Water bill (whether paper or electronic) displays water use in gallons or gallons per day (gpd) for at least all single-family residential customers. 1
3.2 Metering
3.2.1 Dedicated irrigation meters At least 50% of irrigated landscapes greater than or equal to 1 acre in size are supplied by dedicated irrigation meters 1
3.2.2 Submetering Utility requires individual meters or submeters (in lieu of master-metered accounts) as a condition of service on new MF and/or CII accounts meeting equivalent service conditions (e.g. < four stories in height). 1
3.2.3 AMR/AMI Utility has access to AMR/AMI administrative tools to track use and prioritize conservation messaging. 1
3.2.4 Utility uses an AMR/AMI system to provide customers with alerts for possible high use, leaks, and/or consumption approaching the next tier. 1
3.2.5 Utility uses an AMR/AMI to provide customers with regular access (e.g., web or smart phone) to near real-time water use data. 1
3.3 Communications
3.3.1 Advance notification Utility provides notification to customer about water use anomalies, e.g., possible high use or leaks, in advance of sending a bill (excluding AMI). 1
3.3.2 Website tools Utility provides customer access to account information, billing histories, water use, allocations, or direct links to conservation services via a web portal (excluding AMI). 1
3.3.3 Use histories Utility provides information on water use trends to the customer via water bill or other printed means. 1
3.3.4 Benchmarking Utility provides information to customers that compare their water use to a standard or benchmark (excluding AMI). 1
3.3.5 Utility provides reports to customers that compare their water use to others (excluding AMI). 1
3.4 Innovations
3.4.1 Rate structure Utility is implementing an innovative rate structure to promote efficiency, such as budget- or consumption-based charges (excludes allocation and tiered rates) covered in Section 1). 1
3.4.2 Fees & credits Utility's water system capacity or connection fee structure incentivizes the installation of indoor and outdoor water efficient equipment and measures (including recycled water and onsite reuse). 1
3.4.3 Drought/shortage response Utility has adopted a surcharge or other pricing mechanism to support drought and supply shortage reductions. 1
3.4.4 Revenue streams Water rates provide at least 90% of the revenue for the water system. 1

Notes for Option 3

General

1. Effective dates for revised rates may fall anywhere within a reporting period. For each reporting year, a water supplier may select a rate structure in effect on any day of that year for using Option 3 for determining BMP 1.4 implementation status.

2. Partially-metered utilities may use Option 3 for determining BMP 1.4 implementation status. In this case, Option 3 would only be applied to those customers that are metered. In calculating the percent customer water use in Option 3, Section 1, the utility should only use customer water use data for its metered customers.

Section 1:

3. The Council’s Reporting Database will automatically calculate a utility’s Section 1 points once the reporting unit identifies the rate structure(s) applicable to its customer class(es).

4. In cases where a utility has 2 or more different rate structures for its various customer classes, Section 1 points are weighted by the total volume of water sold to each of the four potential customer classes. In order to obtain full points, the percent total volume sold to all customer classes should add up to 100%.


Section 2:

5. Utilities using uniform or tiered rates: The single-family residential proportionality test compares the total bill (both fixed and variable charges) for a single-family residential customer with the total bill for another such customer using twice as much water to determine the strength of the pricing signal embedded in the rate and charges structure. Each utility has the following options for calculating the level of pricing signal:

• The bill for a customer using 0.75 times the mean or median water use divided into the bill for a customer using 1.5 times that volume of water;

• The bill for 0.75 times the peak period mean or median water use divided into the bill for a customer using 1.5 times that volume of water; or

• The bill for water use of 15 hcf divided into the bill for water use of 30 hcf.

6. Utilities with allocation or budget-based rates: The single-family residential proportionality test compares the total bill (both fixed and variable charges) for a customer with the total bill for another customer using twice as much water to determine the strength of the pricing signal embedded in the rate and charges structure. To use the proportionality test, utilities with budget- or allocation-based rates must first select an allocation using one of the following methods:

• Single-family allocation – set the allocation equivalent to the mean or median single-family customer allocation and calculate the proportionality test using 0.75 and 1.5 times that allocation; or

• Single-family allocation during the peak period - set the allocation equivalent to the mean or median allocation during the peak period and calculate the proportionality test using 0.75 and 1.5 times that allocation during the same period.

If data on customer allocation are not available, the allocation may be set using one of the following methods:

• Single-family water use - set the allocation equivalent to the mean or median single-family water use and calculate the proportionality test using 0.75 and 1.5 times that water use; or • Single-family water use during peak period - set the allocation equivalent to the mean or median single-family water use during the peak period and calculate the proportionality test using 0.75 and 1.5 times that water use during the same period.

7. Below are additional guidelines for calculating the level of pricing signal (Section 2):

• Mean or median use may be determined, at the water supplier’s option, based on the calendar or fiscal year immediately prior to the reporting period, an average of the use values of the 5 years immediately prior to the reporting period, or the use value assumed for the “test year” upon which an adopted rate structure is based.

• Where rates and charges vary among subcategories of single-family residential customers (e.g., different fixed charges based on meter size, different variable charges based on pressure zones), the subcategory with the largest number of customers is to be used to determine proportionality.

• A water utility with relatively high commodity charges shall be deemed to convey an adequate price signal without regard to the proportionality test. Any water utility whose adopted volumetric rates for residential customers result in a commodity charge that falls within the top 10% of the commodity charges of all retail water utilities included in the most recent water rate survey published by the California-Nevada Section of AWWA may elect to receive for 16 points in lieu of any points determined by the proportionality test. (Note: This ranking is not simply a comparison of the top-most tier of a utility’s volumetric rate, but rather the total commodity charge at 15 hcf of consumption.)

Has end user subjectResource conservation professionals + and Water or energy utility managers +
Has general subjectDistribution system Water Loss +, Infrastructure and metering + and Rates and billing +
Has introductionWater utilities throughout California are implementing water conservation programs and providing services to the customers they serve. There are four subcategories that comprise signatory utility operation program responsibilities. +
Has resource URLhttp://testwiki.cuwcc.org/w/images/b/bf/UtilityOperationsGuidebook.pdf +
Has resource fileBMP 1.4 Option 3 Matrix Score Calculator 150702.xls +
Has source URLhttp://testwiki.cuwcc.org/w/index.php?title=Memorandum_of_Understanding_Regarding_Urban_Water_Conservation_in_California +
Is publication typeGuidebooks and manuals +