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1.? <br />Unlike a private, for-profit utility, OWASA cannot use utility revenues for purposes <br />such as subsidizing or assisting in payment of bills for low-income families. <br />Unlike a local government with an elected governing board, OWASA cannot do <br />community development projects or provide subsidies for affordable housing in <br />the form of reduced or waived connection fees, etc. <br />Nevertheless, OWASA has come up with some innovative initiatives of interest <br />that are consistent with their legal parameters: <br />¦ OWASA has a system of tiered residential connection or "service availability" <br />fees based on square footage of a residential unit. This approach has <br />resulted in lower fees for smaller homes and apartments but is legally justified <br />and defensible based on research documenting a relationship between <br />demand on water and sewer system capacity and residential unit size. <br />¦ The seasonal water conservation rates, which will go into effect next May and <br />which will be higher from May through September and then lower from <br />October through April, can be expected to shift more costs to customers who <br />use much more water in the summer for purposes such as lawn watering. <br />Typically, these customers are those with single-family homes and large <br />yards. Many apartment and smaller-home residents will pay less over the <br />course of a full year than with the present year-round water rate. However, <br />seasonal water rates are also calculated based on costs of water service <br />(taking into account capital or facility costs) at different times of year. They <br />cannot be arbitrarily set as indicated above. <br />Seasonal Water Conservation rates effective May and October 2002 <br />? The OWASA Board in June, 2001 approved new seasonal water rates that <br />went into effect on May 1, 2002 and October 1, 2002. <br />? For the five months of May through September, the "peak" seasonal water <br />rate increased from the previous year-round rate of $2.90 per 1,000 gallons to <br />$4.08 per 1,000 gallons. <br />? The water rate dropped on October 1, 2002 to an off-peak seasonal rate of <br />$2.16 per 1,000 gallons. An off-peak seasonal rate (which may be adjusted in <br />November after an annual rate review) is then to remain in effect through <br />April. <br />? The purposes of the seasonal rates are to send a "price signal" encouraging <br />conservation and to charge for water service more accurately based on <br />system needs at different times of year. <br />15