USE AND EFFECTIVENESS OF MUNICIPAL WATER RESTRICTIONS DURING DROUGHT IN COLORADO1

ABSTRACT: Drought conditions in the summer of 2002 prompted several cities along Colorado's Front Range to enact restrictions on outdoor water use, focusing primarily on limiting the frequency of lawn watering. The different approaches utilized by eight water providers were tracked to determine the level of water savings achieved, measured as a comparison of 2002 usage to 2000 to 2001 average usage, and also based on a statistical estimate of 2002 “expected use” that accounts for the impact of drought conditions on demand. Mandatory restrictions were shown to be an effective tool for drought coping. During periods of mandatory restrictions, savings measured in expected use per capita ranged from 18 to 56 percent, compared to just 4 to 12 percent savings during periods of voluntary restrictions. As anticipated, providers with the most stringent restrictions achieved the greatest savings.     

THE ADOPTION OF MUNICIPAL WATER CONSERVATION: AN UNLIKELY EVENT?1

ABSTRACT: It is contended that water conservation measures that reduce a water system's net revenues are unlikely to be adopted. Pricing policies that induce conservation can be designed to increase net revenues. Management practices that lead to conservation and pure conservation measures may reduce net revenues; consequently, they are unlikely to be adopted. Recent experience in five southwestern cities supports these contentions. It is argued that the managers of a municipal water enterprise are particularly sensitive to short term variation in revenues. Consequently, to increase the likelihood of the adoption of measures that reduce net revenues it is necessary to remove either the decision to adopt measures that reduce net revenue or the adverse revenue effect from the water enterprise. Finally, to make higher rates for conservation palatable, imaginative use for the funds generated must be developed.     

WATER SAVINGS FROM LAWN WATERING RESTRICTIONS DURING A DROUGHT YEAR,FORT COLLINS,COLORADO1

ABSTRACT: During the drought year of 1977, unusually low river flows during the summer caused the City of Fort Collins, Colorado, to institute lawn watering restrictions for six weeks as a conservation measure. Water use during the restriction period decreased 41 percent below the previous year. The effectiveness of the restrictions, however, has been unclear because abnormally wet weather also appeared to reduce evapotranspiration rates during the period the restrictions were in effect. The statistical analysis indicates that the reduction in water use due to lawn watering restrictions was 603 acre-feet and that abnormal weather reduced use by an additional 659 acre-feet during the same period. During a period of normal evapotranspiration rates, such restrictions would be expected to reduce Fort Collins municipal water usage by 19.7 percent.     

THE EFFICIENCY OF WATER PRICING: A RATE OF RETURN ANALYSIS FOR MUNICIPAL WATER DEPARTMENTS1

ABSTRACT: The rate of return on invested capital can be used as a guide to resource allocation by municipal water departments (MWD's) in the same way it is used in the private sector. To achieve economic efficiency, the target rate of return for MWD's should be the market rate of return as an approximation to the opportunity cost of capital. The actual internal rate of return for a sample of 30 California MWD's for the period 1970-1982 is calculated for this study. The operating internal rate of return varies across the sample MWD's from less than 2 percent to 14 percent. If 10 percent is taken as the opportunity cost of capital, 25 of the 30 MWD's were inefficient; i.e., earned less than 10 percent. Half the sample earned less than 5 percent. An examination of potential causes of low rates of return shows that low average water prices are the primary reason for the low rates of return. For efficient operation, MWD's should set a target rate of return equal to the opportunity cost of capital and adjust water prices so as to achieve that target.     

A MONTHLY TIME SERIES MODEL OF MUNICIPAL WATER DEMAND1

A multivariate time series model is formulated to study monthly variations in municipal water demand. The left hand side variable in the multivariate regression model is municipal water demand (gallons per connection per day) and the right hand side contains (explanatory) variables which include price (constant dollars), average temperature, total precipitation, and percentage of daylight hours. The application of the regression model to Salt Lake City Water Department data produced a high multiple correlation coefficient and F-statistic. The regression coefficients for the right hand side variables all have the appropriate sign. In an ex post forecast, the model accurately predicts monthly variations in municipal water demand. The proposed monthly multivariate model is not only found useful for forecasting water demand, but also useful for predicting and studying the impact of nonstructural management decisions such as the effect of price changes, peak load pricing methods, and other water conservation programs.     

EFFICIENT MANAGEMENT POLICIES FOR URBAN WATER SUPPLY1

ABSTRACT .This paper attempts to spell out the difficult conditions faced by urban water supply managers in achieving overall efficiency. Based upon these conditions, and changes that are likely in the next decade, it then tries to suggest strategies that would lead to even higher levels of efficiency in the future. A blending of political and economic concepts is used to make what is hoped to be a realistic analysis. What do we mean by “efficient”? The usual welfare economics definition is attainable only under a very special and highly unrealistic set of institutional arrangements. As soon as we delegate responsibility to a specialized agency we provide the opportunity, indeed we make it imperative that, in a social sense, a sub-optimization will take place. From the specifics of the indictment of this sub-optimization we can learn something about the opportunities for more efficient management in the future. In general there is an under-exploitation of multiple-function, multiple-objective opportunities. The pressures for sub-optimization hinge very directly on the sources of support and opposition to the water supply agency. A change requires the creation of a broader political base. The search for regional solutions is largely a political problem, and probably the development of flexible, responsive regional agency, so long sought, is still the answer.     

AN EVALUATION OF WEEKLY AND MONTHLY TIME SERIES FORECASTS OF MUNICIPAL WATER USE1

ABSTRACT: A cascade model for forecasting municipal water use one week or one month ahead, conditioned on rainfall estimates, is presented and evaluated. The model comprises four components: long term trend, seasonal cycle, autocorrelation and correlation with rainfall. The increased forecast accuracy obtained by the addition of each component is evaluated. The City of Deerfield Beach, Florida, is used as the application example with the calibration period from 1976–1980 and the forecast period the drought year of 1981. Forecast accuracy is measured by the average absolute relative error (AARE, the average absolute value of the difference between actual and forecasted use, divided by the actual use). A benchmark forecast is calculated by assuming that water use for a given week or month in 1981 is the same as the average for the corresponding period from 1976 to 1980. This method produces an AARE of 14.6 percent for one step ahead forecasts of monthly data and 15.8 percent for weekly data. A cascade model using trend, seasonality and autocorrelation produces forecasts with AARE of about 12 percent for both monthly and weekly data while adding a linear relationship of water use and rainfall reduces the AARE to 8 percent in both cases if it is assumed that rainfall is known during the forecast period. Simple rainfall predictions do not increase the forecast accuracy for water use so the major utility of relating water use and rainfall lies in forecasting various possible water use sequences conditioned on sequences of historical rainfall data.     

AN EARLY WARNING SYSTEM FOR DROUGHT MANAGEMENT USING THE PALMER DROUGHT INDEX1

ABSTRACT: The Palmer Drought Severity Index (PDSI) is used in a non-homogeneous Markov chain model to characterize the stochastic behavior of drought. Based on this characterization an early warning system in the form of a decision tree enumerating all possible sequences of drought progression is proposed for drought management. Besides yielding probabilities of occurrence of different drought severity classes, the method associates a secondary measure in terms of likely cumulative precipitation deficit to provide timely guidance in deciding drought mitigation actions. The proposed method is particularly useful for water availability task forces in various states for issuing drought warnings in advance. The applicability of the technique is illustrated for the Tidewater climatic division of Virginia.     

WATER RESOURCE MANAGEMENT AND DROUGHT FORECASTS IN SOUTH CAROLINA1

ABSTRACT: Despite potential benefits for resource planning, community water systems managers have not used seasonal climate forecasts extensively. Obstacles to forecast use include a lack of awareness of their existence, distrust of their accuracy, perceived irrelevance to management decisions, and competition from other technological innovations. In this paper, ways in which seasonal forecasts might be extended to address more directly some concerns of South Carolina community water systems managers are explored. From May 1998 through August 2002, this group experienced drought conditions that threatened water quality and supply and required restrictions on water consumption. Methods for incorporating long lead forecasts with joint probabilities of monthly temperature and precipitation to produce drought forecasts are demonstrated. When tailored to specific places, such forecasts show the likelihood of exceeding drought thresholds that would trigger water use restrictions. The methods illustrate how long lead forecasts can be extended and customized into secondary products that address issues of greater relevance to water resource managers.     

GROUND WATER DROUGHT MANAGEMENT BY A FEEDFORWARD CONTROL METHOD1

ABSTRACT: Management of a regional ground water system to mitigate drought problems at the multi‐layered aquifer system in Collier County, Florida, is the main topic. This paper developed a feedforward control system that consists of system and control equations. The system equation, which forecasts ground water levels using the current measurements, was built based on the Kalman filter algorithm associated with a stochastic time series model. The role of the control equation is to estimate the pumping reduction rate during an anticipated drought. The control equation was built based on the empirical relationship between the change in ground water levels and the corresponding pumping requirement. The control system starts with forecasting one‐month‐ahead ground water head at each control point. The forecasted head is in turn used to calculate the deviation of ground water heads from the monthly target specified by a 2‐in‐10‐year frequency. When the forecasted water level is lower than the target, the control system computes spatially‐varied pumping reduction rates as a recommendation for ground water users. The proposed control system was tested using hypothetical droughts. The simulation result revealed that the estimated pumping reduction rates are highly variable in space, strongly supporting the idea of spatial forecasting and controlling of ground water levels as opposed to a lumped water use restriction method used previously in the model area.     

OREGON WATER QUALITY INDEX A TOOL FOR EVALUATING WATER QUALITY MANAGEMENT EFFECTIVENESS1

ABSTRACT: The Oregon Water Quality Index (OWQI) is a single number that expresses water quality by integrating measurements of eight water quality variables (temperature, dissolved oxygen, biochemical oxygen demand, pH, ammonia+nitrate nitrogen, total phosphorus, total solids, and fecal coliform). Its purpose is to provide a simple and concise method for expressing the ambient water quality of Oregon's streams for general recreational use, including fishing and swimming. The OWQI, originally developed in the 1970s, has been updated based upon improved understanding about water quality behavior. This report describes the historical basis of the OWQI and defines the improved design of the present OWQI. The index allows users to easily interpret data and relate overall water quality variation to variations in specific categories of impairment. This report demonstrates the value of the OWQI in presenting spatial and temporal water quality information. The OWQI improves comprehension of general water quality issues, communicates water quality status, and illustrates the need for and effectiveness of protective practices.     

PLANNING FOR DROUGHT: MOVING FROM CRISIS TO RISK MANAGEMENT1

ABSTRACT: Severe drought is a recurring problem for the United States, as illustrated by widespread economic, social, and environmental impacts. Recent drought episodes and the widespread drought conditions in 1996, 1998, and 1999 emphasized this vulnerability and the need for a more proactive, risk management approach to drought management that would place greater emphasis on preparedness planning and mitigation actions. Drought planning has become a principal tool of states and other levels of government to improve their response to droughts. For example, since 1982, the number of states with drought plans has increased from 3 to 29. Many local governments have also adopted drought or water shortage plans. Unfortunately, most state drought plans were established during the 1980s and early 1990s and emphasize emergency response or crisis management rather than risk management. This paper presents a substantive revision of a 10‐step drought planning process that has been applied widely in the United States and elsewhere. The revised planning process places more weight on risk assessment and the development and implementation of mitigation actions and programs. The goal of this paper is to encourage states to adopt this planning process in the revision of existing drought plans or, for states without plans, in the development of new plans.     

MUNICIPAL WATER CONSERVATION ALTERNATIVES1

ABSTRACT: The municipal water conservation options available to meet the goals of a national water conservation policy are evaluated. Water conservation with water conservation devices is shown to offer many significant advantages over education and pricing and metering as a method of accomplishing water conservation goals. Current constraints on the use of water conservation devices are outlined, and their elimination is suggested if the nation's water conservation goals are to be met.     

DROUGHT EPISODES MANAGEMENT: THE ROLE OF PRICE1

ABSTRACT: Municipal water utilities, when faced with drought conditions, typically impose a temporary water use restrictions program to achieve conservation goals. If water is sufficiently price-elastic, however, at least some of the problems associated with restrictions can be avoided by imposing a drought surcharge and allowing users to adjust voluntarily. This paper develops two sources of evidence on price elasticity in Honolulu, Hawaii, with the evidence suggesting that a drought surcharge will induce much of the desired conservation, especially when used with educational publicity.     

PROTECTING BEIJLNG'S MUNICIPAL WATER SUPPLY THROUGH WATERSHED MANAGEMEN AN ECONOMIC ASSESSMENT1

ABSTRACT: Watersheds above the Miyun reservoir, a principal source of surface water for Beijing, are designated to be managed for water production, but under the principle of multiple use. Because of the scarcity of arable land, these watersheds cannot be managed only for drinking water. Efforts are under way to reduce sediment delivery, improve the quality of water entering Miyun reservoir, and improve the welfare of watershed inhabitants. An economic appraisal of a watershed management project for the 3,298‐ha Shixia watershed above the Miyun reservoir, indicates a 24 percent economic rate of return on the investment made in the project. The net present value (NPV) of the project, calculated at a discount rate of 10 percent, is approximately US$3.49 million. Sensitivity analyses indicate that a doubling of labor costs lowers the NPV to US$2.07 million and a 10 percent decrease in benefits lowered the NPV to US$2.87. It is concluded that the implementation of conservation practices on the Shixia Demonstration Watershed represent an economically efficient use of resources.     

MUNICIPAL UTILIZATION OF WATER DEMAND MANAGEMENT: THE ONTARIO EXPERIENCE1

ABSTRACT: Managing the demand for municipal water supply has become a viable alternative or supplement to traditional supply management responses. Though senior governments in Canada are committed to the concept, there is a lack of knowledge concerning the level of use of the demand management concept and little promotion of water conservation. This paper assesses the extent of the use of this concept as it applies to municipal water supply across southern Ontario and examines factors that influence the variation in use of water conservation strategies. Information from 219 municipalities revealed that the concept is not in wide use in southern Ontario and that existing variation can be partially explained by the extent of problems experienced and the population size served by the municipal water supply system. Suggestions for increasing municipal use of the demand management concept are offered.     

MUNICIPAL WATER SUPPLY RESTRICTIONS AS URBAN GROWTH CONSTRAINTS1

ABSTRACT: Municipal water supply restrictions and/or conservation policies are widely believed to affect urban growth, at least in Western states. An analysis of this issue, drawing upon a wide array of empirical water use research, casts doubt upon the presumed connection. Water availability seems likely to have little effect upon the amenities which draw newcomers to Western cities. It also seems to have little effect upon the locational decisions of industries which affect growth by creating new jobs. Consequently, there is little reason to oppose municipal water restrictions as prejudicial to urban growth or to favor such restrictions in the hope of constraining growth.     

DISTRIBUTIONAL ISSUES IN WESTERN MUNICIPAL AND INDUSTRIAL WATER SUPPLY1

ABSTRACT Financing and repayment provisions of western water projects effect transfers of income among federal taxpayers, electric power users, local water users, and property owners. We use the Bonneville Unit of the Central Utah Project as a case study in the distribution of municipal and industrial water costs. We examine the distribution of costs among taxpayers and water users in different political/geographical jurisdictions, and how this distribution is affected by water law, cost allocation procedures, and the choice of revenue source for local repayment of reimbursable costs. In light of the magnitude of distributional effects of present water policy, we conclude that lack of open debate on water issues is unfortunate. We conclude with speculation on the relationship of western water policy to the motivation of western water leaders who are instrumental in its formulation     

IS IT REALISTIC TO DEFINE A 100-YEAR DROUGHT FOR WATER MANAGEMENT?1

ABSTRACT: The concept of recurrence interval has been used for years in engineering designs. Can the same concept be applied to the drought analysis? This paper uses the plotting position method to define drought of various recurrence intervals based on stream-flow data. The method of truncation level was applied to the same data to examine the defined drought. Based on the method of truncation level, drought duration and its corresponding flow deficit were investigated. Eighteen flow gage stations from the Scioto River Basin in Ohio were selected for the study. The results show that flows of 100-year droughts using the plotting position method are practically nil. On the other hand, flows of droughts using the truncation method are gradually decreasing with an increase in truncation level, where flows of 95 percent are approximately equal to those of two-year droughts defined by the plotting position. It is also shown that there is a strung correlation between drought duration and deficit.     

PLANNING FOR DROUGHT: THE ROLE OF STATE GOVERNMENT1

ABSTRACT: Although droughts are a frequent occurrence over much of the United States, response by state and federal government has been ineffective and poorly coordinated. Recently, several states have recognized the value of drought emergency planning and have developed plans to assist them in responding more effectively to prolonged periods of water shortage. These states have created an organizational structure to coordinate the assessment and response activities of state and federal agencies. Each state's drought response plan is unique since each state's water supply and management problems, and their consequent impacts, are unique. The drought response plans developed by Colorado, South Dakota and New York are reviewed here in detail. We recommend that other states affected by frequent and severe water shortages also develop drought emergency plans. These plans will enhance state government's ability to implement effective measures in a timely manner and, ultimately, may provide added incentive for the federal government to develop the national drought response plan called for by the General Accounting Office in 1979.