When government regulates it should be thoughtful and reasonable. When it provides a service it should charge fairly.
Last Friday The Capital Times reported that Madison Alder Satya Rhodes-Conway met with fifty citizens to discuss ways of reducing water consumption. Two ideas considered were incentive based rates that charge more per gallon over the first 160,000 gallons used annually and changes in billing cycles.
The Madison Water Utility bills twice yearly. It was suggested that monthly billing would remind people of the cost of water and encourage conservation.
The left and the right both love to regulate to control behavior when it comes to their high priority issues. The problem is that sometime the regulations in place may be better than the proposed new ones, or education may work between than regulation.
Take the billing. It cost the city of Madison $2.04 to send out each water bill. There are 72,095 bills so the cost to send them out twice a year is $294,148. Send those bills out monthly and the cost jumps to $1,764,886.
I don't know if it matters much but in repeated polls over the years, water utility customers made it clear they want biannual billing. I hope what the customer wants counts for something.
Now for the pricing systems. First, the Waukesha pricing system does not kick in until the consumer uses 160,000 gallons annually. Since the average Madison residential household uses well under 60,000 gallons annually it will not impact a lot of homes unless the threshold is significantly lowered. Clearly the Waukesha concept may look good in theory but it does not impact but a tiny one or two percent of the users.
When we compare the water bills of the two communities we begin to see some significant differences. Both have demand charges for the 5/8' or 3/4" pipe that feeds water into the home, a fire protection charge to cover the cost of hydrants, and a sewer demand charge for the handling of waste water. But progressive Madison also has a fee based on the pervious and impervious surfaces of the property. And Madison also has a land fill fee.
In terms of cost, for a home that uses 75,000 gallons a year, the bill in Madison is $426.62 and the bill in Waukesha is $556.40. In Madison the actual charge for the water including the demand charge is $146, in Waukesha it is $224.24
Some might now say water is too cheap in Madison. Certainly Nestle and Bechtel would.
Madison is a community where forty percent of our children live in homes below the poverty line. Despite recent quality issues, Madison is able to provide water cheaper and more efficiently than Waukesha.
The Waukesha pricing system is not significant in terms of impacting 99% of water customers. To be really effective, the volume level that triggers the price increase must be significantly lowered. If our goal is to conserve water, perhaps education might be a more effective tool than raising costs that will have a disparate impact on low income families.
Water conservation tips from Madison and Waukesha
To understand what is going on in Waukesha I suggest the Political Environment where Jim Rowen writes extensively about Waukesha and Lake Michigan water. and the Great Lakes Water Compact.