(a) Prior to January 1, 2005, each water utility shall implement a water conservation rate structure for water utility services provided to its customers in the drought sensitive area.
(b) The water conservation rate structure must apply, at a minimum, to all residential customers subscribing to water services in the drought sensitive area and shall, initially, reflect either:
(1) An inclining block rate structure, under which the unit price for water supply increases as consumption, as measured by successive blocks, increases; or
(2) A seasonal rate structure, imposing an increased unit price for water supply consumed during specified months of the year.
(c) Water utilities. — Each water utility shall submit its proposed water conservation rate structure to the Water Supply Coordinating Council. The water utility shall include with its proposal a schedule for implementation of its water conservation rate structure and a specific plan for informing and educating its affected customers about the adoption of a water conservation rate structure.
(d) On or before April 1, 2014, each water utility shall submit to the Water Supply Coordinating Council an evaluation and analysis of the impact of its water conservation rate structure on its customers’ demands for water supply in the drought sensitive area. With the evaluation and analysis, the utility shall submit any proposal to modify or change its water conservation rate structure and the date for implementing its modifications or changes. The modifications or changes may include water conservation rate methods beyond those identified in subsection (b) of this section. Each water utility shall submit a similar evaluation and analysis every 5 years thereafter, accompanied by further proposed modifications or changes.
(e) For good cause or in cases of hardship, a utility may modify or change its water conservation rate structure at any time. A water utility shall notify the Water Supply Coordinating Council in writing of any modifications or changes in the utility’s water conservation rate structure at least 60 days prior to the implementation of the modifications or changes.
(f) Nothing in this chapter shall be construed to limit the jurisdiction of the Commission over the rates of jurisdictional water utilities including, without limitation, conservation rates.
74 Del. Laws, c. 179, § 2; 78 Del. Laws, c. 70, §§ 7-12.
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