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City of Rifle Water Conservation Plan <br />• The difference is a maximum annual need of 13 5 ac-ft. <br />Final Report -July 2008 <br />• At a cost of $150 per ac-ft (the current market rate for Ruedi Reservoir storage), eight <br />years of 13 5 ac-ft/yr storage amounts to a potential savings of about $160K. <br />7.4 Revenue Impacts of Conservation <br />One of the major existing City water system needs and one of the primary water <br />conservation programs recommended by this plan is the implementation of a new water <br />rate structure. The City currently needs to increase revenue to achieve a financially more <br />self sustaining system. The impact of reducing peak water use will be a reduction in the <br />peak rate tier in which many customers will fall during irrigation months. The reduced <br />irrigation season use will also reduce the total amount of water consumed and billed. <br />This will reduce revenue unless rates are set properly. Development of the new rate <br />structure will need to consider this impact in order to achieve sufficient revenue. The <br />rates will likely need to be re-evaluated annually once the new structure is implemented <br />to determine how customers' water use behavior has responded. Rates would then be <br />adjusted iteratively in subsequent years to help achieve simultaneously the City's revenue <br />and water conservation goals. <br />SGM # 99055A-388 40 Integrated Resources and <br />Modified Forecasts <br />