But how much premium will VCU pay?

Thanks,
Scott

Begin forwarded message:

From: DPU – Communications
Date: August 18, 2008 3:27:19 PM EDT
To: DPU – Communications
Subject: News release: New water rates underscore conservation effort

New Rate Underscores Conservation Message

RICHMOND, VA—In an effort to encourage water customers to conserve water when supply is scarce, the City of Richmond instituted a water conservation rate, effective July 1, 2008. During designated periods of either voluntary or mandatory conservation, customers who make the decision to use more than 140 percent of their normal winter water usage (water consumed during December, January, and February) will pay a higher commodity rate on their excess usage.

“Rates are set to drive customer behavior,” said Acting Chief Administrative Officer and Public Utilities Director Chris Beschler. “The behavior that we want to promote is to protect one of our most precious natural resources so that we all are doing our part to help the environment. This water conservation rate provides a financial incentive for water customers to do just that,”

Under this water conservation rate, DPU water customers will pay a 50 percent premium on water used over and above 140 percent of their normal winter water usage during voluntary conservation measures, and a 100 percent premium during mandatory water conservation measures.

The following is an example of what an average customer would pay using more than the normal l winter water usage during voluntary or mandatory water conservation measures:

For an average water customer whose winter monthly consumption = 8 Ccf
Conservation charge threshold (8 Ccf X 140%) = 11 Ccf
Actual monthly consumption during conservation period = 20 Ccf
Consumption subject to conservation rate (20 Ccf – 11 Ccf) = 9 Ccf

Voluntary conservation measures were implemented August 11, 2008 in the City of Richmond and surrounding counties when water levels in the James River dropped below the 1,200 cfs trigger level. For more information on conservation measures during either voluntary or mandatory water conservation periods, visit DPU’s website at www.RichmondGov.com/DPU; click on “Water Utility;” and then click on “Water Utility Page” in the drop down menu, or contact DPU’s Customer Care Center at 644-3000.
Contact: Angela Fountain, DPU Communications, 646-7323

Hard copy attached

City of Richmond Department of Public Utilities
Communications Division
730 E. Broad Street, 6th Floor
Richmond, VA 23219
(O) 804.646.5224, (Fax) 804.646.4858
Email: DPUC@richmondgov.com