
NIROBOX™ packaged water treatment plants, featuring a unique configuration of low-energy components, are the lowest carbon footprint desalination plants in their class.
Decoupling Revenue From Volumetric Water Consumption
Water scarcity is a global challenge, and utilities face the task of balancing financial stability with environmental responsibility. Traditionally, utilities charge customers based on the amount of water they use. This motivates the utility to sell the customer more water, rather than encourage efficiency and sustainable practices.
However, utilities have costs and need a fair method to charge customers for their water use. One innovative approach to achieving this balance is water decoupling. This separates utility revenue from the volume of water consumed.
Decoupling involves breaking the direct link between utility profits and water sales. Instead of relying solely on volumetric consumption, utilities set revenue targets approved by regulators. The customer is still charged based on how much water they use, and the utility adjusts rates periodically to meet that revenue target, regardless of how much water they treat. This method also reduces financial risk for utilities in case of a fluctuation in demand because it allows long-term planning.
The California Supreme Court recently upheld the use of water decoupling as a rate-making mechanism. The decision is significant because it safeguards utilities’ due process rights, allowing them to demonstrate the effectiveness of decoupling before any regulatory decisions are finalized.
For a regulated utility, water decoupling is a beneficial tool that helps keep rates affordable for customers who use less water while also encouraging conservation efforts. The practice is used by California Water Service and other utility companies.
In the past decade, the California Public Utilities Commission permitted certain water companies to adopt water decoupling in their rate structures. The policy change was aimed at fostering conservation and reducing the financial incentive for selling more water. The goal of decoupling is growth without harm to the environment.
Fluence Corporation, a global leader in water solutions, is dedicated to helping communities and companies make the most of their water resources while also protecting the environment. We offer water and wastewater treatment solutions with low energy consumption.
NIROBOX™ packaged water treatment plants feature a unique configuration of low-energy membranes, a positive displacement high-pressure pump, a work exchanger energy-recovery device, and a variable frequency device. NIROBOXTM is the lowest carbon footprint desalination plant in its class.
Our Aspiral™ Flex containerized wastewater treatment solutions feature membrane aerated biofilm reactor (MABR) technology for energy-efficient nutrient removal. Our advanced technologies like MABR and membrane bioreactors (MBR) produce high-quality effluent that can be reused for cleaning, irrigation, toilet flushing, landscaping, and even drinking. Our industrial options include waste-to-energy solutions, reuse solutions, and energy-recovery systems to promote a circular economy while producing water that meets standards for use or discharge.
Decoupling revenue from volumetric water consumption is a delicate balancing act. By safeguarding both financial stability and water resources, California and companies like Fluence pave the way for sustainable water management. Don’t miss out on the future of water management. Contact our team to discuss how our proven water solutions can help you achieve your utility’s sustainability goals.