Julie M. Spacht
Water Executive Managing Engineer
Los Angeles Department of Water and Power
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Communication
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Solid numbers
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Rate Payers, Decision Makers, Stakeholders,
Regulators, Press, Institutions
Cost of Service Studies….
Communication- closing the loop
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Geography
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Political
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Scarcity/ uncertainty
Dispersion
Layers of jurisdiction and influence
Ag/ Urban/ Environmental Uses
Progressive outlook
Legal issues
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Prop 218
Legal activism
Water Rights
Public
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We conserve and you
raise the rate
Getting less for more
I need more than
others because…
Social Justice issues
Affordabilty
 Equity
 Sustainability
Utility
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Revenues drop due to
conservation
Revenue drops even
more than amount
conserved.
Added costs to
promote conservation.
Uncertainty causes
additional costs
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Rate Stabilization Accounts
Setting priorities through
communication
Alternative revenue streams
Alternative methods of financing
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Fixed Rate
Tiered Rates
Shortage year rates
Programmatic- dedicated Passthroughs
Decoupling
Conservation
Revenue
Fixed Rate
No
Yes
Tiered Rates
Yes
Some
Shortage year rates
Yes
Yes
Programmatic- Pass-throughs
Yes
Yes
Decoupling
Yes
Yes
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Provide stability to
important programs
Provide oversight by
decision makers
35
30
25
20
15

Collect only what in
necessary
10
5
0
Rate
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Revenues ABOVE
sales target are
returned to
customers.
Revenues BELOW
sales target are
recovered through
charges over the next
calendar year.
Return
$
Collect
$
Year-end
Revenues
ABOVE
Sales Target
Annual
Sales
Target
Year-End
Revenues
BELOW
Sales
Target
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Drought Insurance
Leveling risk
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Interruptible Retail Water
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Differing Quality and Services
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Building Trust
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Image management
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Don’t talk to Public only when you need a rate
increase
Build networks
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State/ Regional Drought - Local Issue
Not everything will work for everyone
Water means different things to different
Stakeholders
There is no real shortage of water
THANK YOU
[email protected]