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CASE EXAMPLE

Regulatory Intervention

UCM worked with client's water utility to design a new rate structure.

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The Full Story -  UCM's restructured water rates eliminated penalties paid by a beverage plant.

UCM worked for a beverage manufacturing plant that was the largest user of water in the city.  The plant worked hard to use water efficiently, but there was only so much that it could do, given the amount of water used in its product and the water needed for cleaning operations.

 

UCM noticed that the city’s “tiered” rate structure, in which higher levels of water usage were billed at successively higher rates, penalized large customers.  Through additional research, UCM discovered that the rate structure violated regulatory provisions that required water rates to reflect the cost of service.

 

UCM brought its concerns to the city’s Director of Public Works, who administered the water department.  Over a period of 18 months, UCM worked with the city to design a new rate structure that treated UCM’s client more fairly, and to obtain approval for the new plan from the City Council.  In the end, the beverage plant reduced water costs by roughly 20% because of UCM’s efforts.