Explanation of CBFR water rate structure intended to begin in 2015:
CBFR is an acronym for consumption-based fixed rate. There is a fixed component and two different consumption components. The fixed rate is for the pipes, meters, billing, administrative costs, treatment facility and all the stuff that we need no matter how much water flows through it. It is also based on the size pipe that comes to the property, which determines the amount of water that
you have the potential to use.
The first consumption category is a charge per hundred cubic feet (748 gallons) actually used in any given month. The second consumption category is based on each user taking responsibility for his contribution to why the project was calculated to need to be the size it is, because it needs to provide enough water at peak demand, also known as summer.
But to base it on past summer use before people were warned of this part of the calculation was deemed unfair. So this part of the rate structure was delayed until a 2014 summer use is measured. Everyone will have a chance to not use as much during peak demand as they used to and be able to take full responsibility for what they are charged based on their consumption during future peak periods.
Because conservation is expected, the rates take into account an estimated 21 percent conservation level so the revenues do not fall short. Every year, your summer use will be remeasured and it is on that use that your next year’s charges will be based for the peak demand (summer) part of the calculation, so you have a chance every year to do better.
The summer of 2014 is the first measurement that will be used for that part of your 2015 rates, and so on. Every user has the chance to become a whole new persona when it comes to water use; no one will ever have to know who you used to be, this is your big chance.
I thank Frank Loge and Matt Williams for devising such a fair and equitable method.