How revenue losses played into decision to relax conservation rules in California

It wasn’t just generous spring rains filling north-state reservoirs that had California’s urban water districts pushing back so hard against mandatory water cuts this year.

All those brown lawns and shorter showers have cost them millions in customer revenue.

As water use plummeted because of the statewide conservation orders implemented last summer, many water agencies found themselves struggling to cover operating costs. Less water use has meant lower monthly utility bills, and for most utilities, there has been no correlating decline in basic operating costs, such as payroll, debt obligations and maintenance of pipes and treatment plants.

“We have to pay that whether we sell one drop of water or a million drops of water,” said Carol Margetich, business services administrator for Roseville’s environmental utilities department.

Read more: http://www.sacbee.com/news/state/california/water-and-drought/article89747342.html