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." times the maximum savings for toilets, showers, and appliances (dish- washers, washing machines, and faucets). The procedure provides reasonable estimates of the water savings brought about by technological improvements of water-using devices. More precise calculations of savings result from applying the use factor model on a district by district basis. Conservation savings to account for natural replacement of water-using devices will be dis- cussed in association with the conservation analyses to be conducted in Task 4 of the EIS. During the technical review of Task 2, the methodology employed in the estimation of demand reductions due to metering of previously un- metered houses was examined. In the original analysis, flat rate sin- gle-family houses that convert to metered houses were treated as "new" houses with respect to the presence of more efficient fixtures and ap- pliances. Natural replacement of old, less efficient fixtures and appliances will actually occur at the same rate as for other existing homes, and this rate of replacement is lower than for "new" homes. Correcting for this methodological error yields higher demands and, therefore, reduces the estimated reduction in demand due to metering. Another methodological error that was isolated involves the use of a marginal price of water of $0.00 for districts which provided only flat rate service in 1980. In the original analysis, as new (metered) houses were built and flat rate houses were converted to metered hous- es, the marginal price remained at $0.00 for these districts. To cor- rect this situation, the average EIS demand area marginal price, ($1. 17/1, 000 gallons) was used for these distric ts. This correction results in slightly lower demands for converted houses. The actual effects of these modifications will be presented in the final Task 2 report. 22