COST BEHAVIOR AND WATER SYSTEMS1

ABSTRACT: Several factors theoretically affect the cost behavior of water systems. These factors include scale, consumer density, and per capita usage. This analysis examines the several possible influences on the unit costs of water service. The statistical analyses indicate that among the factors of scale, per capita use, and consumer density, only the first two factors are important influences on water system costs. Water consumers appear to benefit from being served by large systems and being located in service areas characterized by relatively high per capita consumption. There is little statistical evidence indicating that more dense areas can be provided water service at lower costs than less dense areas.     

THE W-INDEX FOR RESIDENTIAL WATER CONSERVATION1

ABSTRACT: An index of residential water efficiency - a “W-Index” - can serve as a measure of effectiveness of water conservation features in the home. The index provides a calculated numerical value for each dwelling unit, derived from the number and kind of water-saving features present, including indoor and outdoor water savers and water harvesting or recycling systems. A W-Index worksheet, devised for on-site evaluation of single-family residences in the Tucson, Arizona, region shows that a nonconserving residence with all the water-using features would use 151,000 gallons per year or 148 gallons per capita per day (gpcpd), while the fully conserving model would use 35,300 gallons per year or 35 gpcpd and with water harvesting and graywater recycling systems would have a maximum W-Index of W-160. A Tucson water conservation demonstration home, Casa del Agua, received a rating of W-139, and field tests of about 30 homes in new Tucson subdivisions show values ranging from W-75 to W-100, indicating the incorporation of some water conservation in current new models. By adjustment of some climatic or water-use parameters, the W-Index format can be applied to various types of dwelling units or to other urban areas. The W-Index can be used by individual homeowners or builders to evaluate water efficiency of residential units, or by water providers or water management agencies as a device for promoting and achieving water conservation goals.     

WATER USE RELATIONSHIPS AND PROJECTION CORRESPONDING WITH REGIONAL GROWTH,SEATTLE REGION1

ABSTRACT: The paper outlines both the methods used and the results obtained in a study of the demand for municipal and industrial water for the Seattle region. The study was made as part of a regional water management study program, one objective of which is to “… identify, quantify, and set priorities for all current and future water uses …”. A basic concept in the study of municipal and industrial water use is that the demand for water is derived from the demand for output and the direct services that water provides. Principal characteristics of the study are: (1) Water use is studied by type - residential, commercial, industrial and public -with identification of factors affecting each; (2) Water demands are studied by season as well as on an annual basis; (3) Projections of future water use are tied directly to projections of economic change in the service area; and (4) The effects of alternative policies on water use are estimated. Water use levels are projected under alternative regional growth assumptions provided by the Puget Sound Governmental Conference, a regional planning agency. Thus, the water use planning is consistent with other regional planning programs in this respect. The results can be varied according to changes in specific factors affecting water use. The factors considered in the present study include: single-family residential lot size, distribution of population between single- and multi-family units, per capita water use by multi-family unit residents, and industrial and commercial water use per employee. An income elasticity of demand was estimated for single-family residential water use.     

NONPRICE WATER CONSERVATION PROGRAMS AS A DEMAND MANAGEMENT TOOL1

ABSTRACT: Water providers nationwide are implementing nonprice conservation measures such as education, public information, appliance retrofit and ordinances, with the expectation that these programs will reduce residential water demand. However, little empirical information exists on the effectiveness of nonprice conservation programs in reducing water demand. Previous econometric studies indicate these programs have had minimal impact. We examine the types and number of major nonprice conservation programs that have been implemented during an 11-year period in seven cities in the southwestern United States. A cross sectional, monthly time series residential water demand model, with parameters to control for variation in prices, temperature, precipitation and other factors, was used to empirically investigate the effectiveness of nonprice conservation programs in reducing water demand. We found significant reductions in use ranging between 1.1 percent and 4.0 percent per program. Because of the lack of information, we were unable to distinguish the effectiveness of individual or specific types of programs. Beyond finding that nonprice programs can be effective in reducing demand, questions regarding the efficiency and benefits to be achieved by conservation remain. As a step towards separating and evaluating the effects of individual programs, program benefits and efficiency, we recommend that utilities maintain more detailed and consistent information regarding the implementation of their nonprice programs.     

ACHIEVING URBAN WATER CONSERVATION1

ABSTRACT: Increasing costs and competition for water have resulted in pressure to manage urban water demand through conservation programs. Metering, pricing, devices, restrictions, building code changes, and horticultural practices have all been effective in reducing average residential water use. Some conservation means are specifically aimed at reducing peak demands but these usually reduce average usage as well. Combined programs of conservation can be expected to reduce urban demand by as much as 25–30 percent over the long term. Restrictions can reduce water usage on the short term even further. The success of conservation programs is as dependent on the effectiveness of public education and information dissemination as on the conservation practices themselves.     

HOUSEHOLD WATER USE: TECHNOLOGICAL SHIFTS AND CONSERVATION IMPLICATIONS1

ABSTRACT: A study was undertaken to determine the effect of water intensive appliances or activities on household water consumption. Activities included in the study were use of the washing machine, dishwasher, swimming pool, and lawn watering. In the majority of cases these activities increased per capita consumption and were statistically significant. Households included in the study were not familiar with water saving devices available in the retail market. Even if tehse appliances were purchased, private economic benefits to the household would be low due to the inexpensive water charges levied. However, aggregate community benefits could be large if new well drilling cost or increase in storage facilities could be avoided. In order to avoid these increased costs, regulation or subsidy programs may be the most efficient policy alternatives available to the communities. Subsidies and regulation could potentially decrease water use and offer alternatives to increasing the water supply.     

A RATIONALE FOR THE REGIONALIZATION OF PUBLIC WATER SYSTEMS1

ABSTRACT. A rationale is set forth for requiring and/or encouraging the consolidation or regionalization of all systems beneath certain population size levels based on the small water systems’ capability to produce an adequate supply of safe drinking water at a reasonable cost to customers. Estimates for basic costs of water service including personnel, other operation and maintenance and capital are made and a range of water rates is suggested based on reasonableness and acceptability to customers. Guidelines are then drawn for a moderate rate of $10.00 per month and an upper limit rate of $15.00 per month to show the sizes at which public water systems might be expected to achieve fiscal viability. Finally, recommendations are made to State and Federal governmental agencies concerning possible legislation, plans and programs to achieve better public water service through the regionalization or consolidation of small public water systems.     

ECONOMIES ASSOCIATED WITH SIZE OF WATER UTILITIES AND COMMUNITIES SERVED IN NEW HAMPSHIRE AND NEW ENGLAND1

ABSTRACT. This study investigates economies associated with size of New England water utilities. Regression analysis techniques were applied to annual water cost and production data reported in the American Directory of Water Utilities (1968-1969). Modest economies of size in the production of water were found. Because in large communities more water is used per person, total cost increases at a slightly faster rate than population increases, but per unit costs of producing water decline. Substantial economies occurred when the number of customers was held constant and volume of water per customer increased. This study indicates possible economies when two or more of the many very small utilities combine activities to form a larger unit and by encouraging present customers to use more water.     

THE IMPACT OF WATER QUALITY OBJECTIVES ON URBAN WATER SUPPLY PLANNING1

ABSTRACT: Optimal policies for supplying rapidly expanding urban centers with additional water supplies are shown to be dependent on water quality goals for the urban effluent. As effluents are required to meet increasingly stringent standards, the unit costs associated with adding capacity to existing wastewater treatment systems to renovate some waters for reuse are shown to substantially decrease. A nonlinear elimination algorithm is developed to delineate optimal policies. A model employing the technique was applied to the wastewater treatment system of a typical urban system and the water quality objectives varied. A comparison of costs with and without various levels of reuse were made and unit costs of reused water under these conditions determined.     

COSTS AND EFFECTS OF A WATER PROGRAM FOR A SMALL STRIPPING COMPANY-SOUTHEASTERN OHIO1

The purpose of the study was to use economic analysis in determining the ability of a small strip mining company to incure the financial burden of carrying out various alternative mine drainage abatement programs. The quantity and quality of water with which the company has to deal were determined and treatment and diversion programs were costed out. The company's market area and the market structure were analyzed. It was found that pricing policies were determined by a dominant firm, so the target company had no control over its price per ton of coal. The costs and revenue of the firm were analyzed for the period 1960-1970 and, even without a water quality program, losses were incurred in six out of eleven years. Analysis of the average cost curve indicates that the per unit cost could have been reduced by increasing output thereby increasing efficiency. The conclusions of the study were that the small company could not unilaterally implement mine drainage programs because the added costs would seriously worsen its already precarious financial position. Even uniformly enforced legislation might reduce the small firms competitive position because of economies of scale associated with the large treatment facilities used by big mining companies.     

WATER SUPPLY COSTS FOR SMALL PRIVATE UTILITIES1

ABSTRACT: This paper examines the cost of water supply for small and mid-sized private water utilities. An econometric approach was employed in which data on utility costs and characteristics were used to estimate a total water supply cost function from which average and marginal costs were derived. The results suggest that although average and marginal costs decline with output, the rate of decline rapidly approaches zero, and unit costs therefore appear to remain relatively constant over a wide range of output. Implications of the results for pricing policy are examined.     

GROUND WATER YIELDS AND INVENTORY FOR LAND-USE PLANNING IN CRYSTALLINE ROCK AREAS OF WAKE COUNTY,NORTH CAROLINA1

In urbanizing areas underlain by crystalline rocks an inventory of the usable ground water should form an important element in the land-use planning process. Land-use decisions are most often made upon water-well yield data alone, but these data do not address the inventory question. A method utilizing local geology, stream lowflow characteristics, and pumping test data permitted outlining portions of Wake County, North Carolina, which are more favorable and those which are less favorable for ground water supply development. Information from state-required 24-hour pumping tests on 232 wells was supplemented by information from an additional 100 wells whose initial yields were determined by shorter pumping tests. Comparison of the ground water inventory values on a per acre or per square mile basis with average water use at various residential densities provides information useful to the responsible political body as it decides about population density distribution and the need for surface water supplies. For Wake Country an average density of one residential unit per acre appears generally permissible before overdraft of the ground water supplies becomes a significant risk. By utilizing the ground water inventory and patterns of ground water yields from various rock types, county officials can maximize the effectiveness of public facilities funds. The technique appears useful for other parts of the Piedmont region of the southeastern United States.     

USING CONTINGENT VALUATION AND BENEFIT TRANSFER TO EVALUATE WATER SUPPLY IMPROVEMENT BENEFITS1

ABSTRACT: Many water systems in small cities and rural areas throughout the United States are facing water quality and supply problems. These problems are typically not the result of an unexpected event, but are the result of growth trends or decreasing water quality experienced over several years. This analysis uses the contingent valuation and benefit transfer methods to evaluate the willingness to pay for a rural water system in northcentral Montana. Both of the procedures resulted in similar values, ranging from about $4.05 to $7.50 per household per month for urban residents and $5.40 to $11.50 per household per month for rural residents, which is equal to 11 percent to 23 percent of current average water costs. The willingness to pay estimates do not include non-household water users. This analysis shows that useful planning information can be obtained from relatively inexpensive contingent valuation mail survey data and the benefit transfer method as long as the limitations of the data are understood. The willingness to pay for ensuring good quality rural water supplies in the future is likely to be low compared to the costs of extensive diversion and treatment systems. Willingness to pay estimates provide decision makers with information that can be used to avoid building a large water supply system that water users do not want to connect to because of high costs.     

QUALITY STUDY OF GRAYWATER TREATMENT SYSTEMS1

ABSTRACT: A residential single family dwelling was retrofitted to recycle graywater for landscape irrigation and toilet flushing. The objective of this study was to determine improvements in graywater quality by evaluating five simple graywater treatment systems that were easily adapted to the household plumbing. The treatment systems consisted of (1) water hyacinths and sand filtration, (2) water hyacinths, copper ion disinfection, and sand filtration, (3) copper ion disinfection and sand filtration, (4) copper/silver ion disinfection and sand filtration, and (5) 20–μm cartridge filtration. Water quality parameters measured were fecal and total coliform indicator bacteria, nitrates, suspended solids, and turbidity. Reductions in bacterial concentration, suspended solids and turbidity were achieved by all systems tested. Treatment reduced nitrate concentrations to an average of 2.6 mg/liter. Reductions in suspended solids, and turbidity were influenced more by the quality of the graywater entering the treatment system than the efficiency of the systems themselves. The water hyacinths and sand filtration system provided the best graywater quality in terms of the concentrations of fecal indicator bacteria. The system providing the best water quality in regard to average suspended solids after treatment was the water hyacinths, copper ion, and sand filtration system, and the best average turbidity was achieved by the copper/silver ion generating unit with sand filtration. All systems were capable of significant reductions in fecal indicator bacteria, suspended solids, and turbidity; however, additional treatment or disinfection would be necessary to further reduce the level of coliform and fecal coliform bacteria to achieve regulatory standards in the State of Arizona.     

Water Use by Thermoelectric Power Plants in the United States1

Abstract: Thermoelectric power generation is responsible for the largest annual volume of water withdrawals in the United States although it is only a distant third after irrigation and industrial sectors in consumptive use. The substantial water withdrawals by thermoelectric power plants can have significant impacts on local surface and ground water sources, especially in arid regions. However, there are few studies of the determinants of water use in thermoelectric generation. Analysis of thermoelectric water use data in existing steam thermoelectric power plants shows that there is wide variability in unitary thermoelectric water use (in cubic decimeters per 1 kWh) within and among different types of cooling systems. Multiple‐regression models of unit thermoelectric water use were developed to identify significant determinants of unit thermoelectric water use. The high variability of unit usage rates indicates that there is a significant potential for water conservation in existing thermoelectric power plants.     

LAND USE AND STREAMWATER NITRATE-N DYNAMICS IN AN URBAN-RURAL FRINGE WATERSHED1

ABSTRACT: Agricultural and residential activities are key non-point sources of nitrogen pollution in urban-rural fringe areas. A GIS-based watershed approach was used to compare land use indicators (septic system and animal unit densities), to streamwater nitrate-N in the Salmon River near Vancouver, B.C., Canada. The density of septic systems was used as an indicator of residential development while animal unit density was used as an indicator of the intensity of agricultural activity. Nitrate-nitrogen (nitrate-N) concentrations as high as 7.1 mg·L^?1 were found in the mid-portion of the watershed during the summer months, when streamflow is low and groundwater comprises a large proportion of water in the stream. The major aquifer supplying water to the midsection of the watershed is contaminated with nitrate-N. A comparison of the relationships between septic system and animal unit density and nitrate-N in the upstream to downstream direction provided evidence that both residential and agricultural activities contribute to elevated nitrate-N in the Salmon River mainstem. In contrast, only septic system density corresponded to the pattern of streamwater nitrate-N in Coghlan Creek, the main tributary to the Salmon River.     

EVALUATING THE PERSISTENCE OF RESIDENTIAL WATER CONSERVATION: A 1992–1997 PANEL STUDY OF A WATER UTILITY PROGRAM IN DELAWARE1

This study systematically evaluates residential consumer responses to a utility conservation initiative based on an econometric analysis of a sample of 510 households served by Artesian Water Company, Inc. (New Castle County of Delaware). Using a panel study approach covering the period from 1992 to 1997, this study shows that Artesian's water conservation program has had statistically significant and persistent impacts on residential water consumption.     

FACTUAL INPUTS FOR ALLOCATION DECISIONS CONCERNING SCARCE WATER RESOURCES1

ABSTRACT: Factual inputs which may be useful for completing first-order assessments to aid decision-making on the allocation of scarce water resources are compiled. Water needs of major manufacturing industry groups and of minerals industries show wide variations in several measures of water use intensity. The chemicals and allied products and primary metals industries dominate the total water intake and consumptive water use by manufacturing industries. Consumptive use per employee for the petroleum and coal products industry group is nearly 2.5 times higher than that for any other industry group. Estimates of the water requirements per unit energy output for energy-processing systems vary by as much as an order of magnitude. Agricultural water use is larger than that of any other industry but water use for irrigation is not expected to increase significantly by the year 2020. In California, the production of crop calories and proteins per unit of irrigation water applied may vary by more than an order of magnitude. Crops which offer larger monetary returns per acre are irrigated most frequently.     

CONSERVATION PRACTICES AND ATTITUDES AMONG MARYLAND WATER SUPPLY MANAGERS1

ABSTRACT: In addition to offsetting water supply shortages, water conservation is recognized as serving many purposes, ranging from reduced energy consumption to lower capital costs. Since the discussion of these benefits has been a recent development and has generally excluded local water supply managers, a question arises as to whether supply managers are implementing conservation programs to exploit these benefits. A survey of the managers at 35 Maryland water utilities provides insight into the prevailing attitude toward conservation in a water rich eastern state. The results indicate that most managers continue to view conservation only as a short term response to temporary supply shortages. Only 12 Maryland utilities have undertaken any form of water conservation activity and just two systems have ongoing, comprehensive conservation programs. Institutional, perceptual, economic, political, and time constraints all contribute to the managers’attitudes and general inaction. If water conservation is to be widely practiced, these issues must be addressed and the benefits attributed to conservation must be better documented and articulated to supply managers.     

Changes in electrical generator cooling systems: Are they cost-effective sources of water now and under climate change?

In the United States, thermal power plant electrical generators (EGs) are large water diverters and consumptive users who need water for cooling. Retrofitting existing cooling systems to dry cooling and building new facilities with dry cooling can save water and reduce EG's vulnerability to drought. However, this can be an expensive source of water. We estimate that the cost of water saved by retrofitting cooling in existing EGs ranges from $0.04/m³ to $18/m³ depending on facility characteristics. Also water savings from building new EGs with dry cooling ranges in cost per unit water from $1.29/m³ to $2.24/m³. We compare costs with that for water development projects identified in the Texas State Water Plan. We find the water cost from converting to dry cooling is lower than many of the water development possibilities. We then estimate the impact of climate change on the cost of water saved, finding climate change can increase EG water use by up to 9.3% and lower the costs of water saved. Generally, it appears that water planners might consider cooling alterations as a cost competitive water development alternative whose cost would be further decreased by climate change.