May 5th the Council is considering a resolution requesting Pleasanton Water Customers to voluntarily reduce their water demand by 20% during the calendar year 2009. Of course, that will mean a loss of revenue. The Staff Report suggests that "The loss in revenue due to water conservation could be offset by changing the City existing water rate structure to compensate for different levels of water demand reductions or slightly higher water rates or tiers for higher use customers."
This happens every time there's a crunch - first the voluntary reduction, then the forced reduction - because everyone knows that if you cut back too much during a voluntary reduction, you're going to be in dire straits when the forced reduction comes. Of course, with reduction the water/gas/garbage/energy provider loses revenue, so the rates have to go up to compensate.
What do you think? How much will the increase in water rates be? At least 28% to match PGS? More? The City was already performing a water rate study to adjust existing rates, so any loss of revenue would probably be on top of the "adjusted" rates.
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