Conservation Rates

 

We’ve had droughts in the past.  What’s different about this year?

Besides the winter of 2025-2026 having the WORST snowpack in recorded history, we also saw a record setting 6 days of over 80 degree temperatures in February, 9 days over 100 degrees so far, and almost no rain in the spring and summer months.  From June 1 to Aug 12, Vernal received a pitiful 0.11 inches of rain. So, while there have been droughts and dry years in the past, we’ve never experienced anything like this before, nor what was projected.

We’ve never run out of water in the past so why the concern this year.

Spring conditions and weather predictions were bleak with an already limited supply of water.  By the end of April the district had already exhausted its full Steinaker supply of water.  This left a guaranteed supply of 1620 Acre Feet in Red Fleet.  Predictions for high mountain reservoirs at the time ranged from 0 to 25%, and creek flow was predicted to be at records low flows due to the lack of snowfall. 

Additionally, the district was informed that in 2026 its spring-flow right would be cut by approximately 50% due to errors in the filings and updates in 1983 and 2014 respectively.  This means that the volumes of water the district had received from 2014-2025 would be severely reduced, in a year where the Spring was already predicted to produce its lowest amounts ever.

Also, please note that the culinary districts received a letter from the State of Utah Division of Water Rights in April that warned about water supplies.  One line in particular was very concerning, and it read, “If we are not conservative with our water use in the valley, the culinary water systems in the valley may run out of water.”

The rates this year a way more than last year.  Why?

During the summer of 2025 the district implemented a conservation rate that was higher than the normal rate, and during the summer months (April to Oct) there was barely 5% conservation total.  During the higher rate months (July-Oct) there was 11% conservation.  This represented less than 200 Acre-Feet total and the district was required to lease water from Vernal City and Brush Creek Irrigation Company to have enough supply for the season.  These leases were not available in 2026.

Did you even bother to ask your customers what they thought?

In March of 2026 we sent a survey out to all of our customers asking questions about the drought, communication preferences, conservation ideas, & billing and rates.  We learned some great things from this survey and used what we learned to create the new rate structure.  The overwhelming feedback we received was that there should be calculated allotments of water, those that use the most should pay the most, and that the best way to keep customers informed is via text messages and email.  The district used all of that in creating the rates for 2026.

Why are tiered rates used to encourage conservation?

Tiered water rates encourage efficient water use by keeping essential household needs affordable while charging higher rates for larger volumes of consumption, which are typically associated with outdoor irrigation. This approach focuses conservation efforts on discretionary water use rather than basic indoor needs such as drinking, cooking, bathing, and sanitation.

Tiered rates also promote fairness by ensuring that customers who place greater demands on the water system contribute a larger share of the costs required to provide and maintain that service. During periods of drought or water supply uncertainty, tiered rates encourage conservation while allowing customers the flexibility to decide how much water they use and whether additional consumption is worth the added cost.

The District's temporary conservation rates were designed with these principles in mind. The goal was to reduce excessive outdoor water use and preserve available water supplies while maintaining reliable service for the community. The record conservation achieved by District customers demonstrates the effectiveness of this approach.

Your rates were a “One Size Fits All” structure and didn’t take into account my higher need because I have a larger yard, orchards and animals.

The District recognizes that water needs vary among customers, and properties with larger yards, orchards, or animals often require more water. However, water is a limited community resource, and the costs of developing, treating, storing, and delivering water increase as demand increases.

The purpose of tiered rates is not to treat every property the same, but to encourage efficient use while ensuring essential water needs remain affordable. Customers were not prohibited from using additional water; rather, those who chose to use more water paid higher rates that reflected the increased demand on the system. This approach helped achieve record conservation, preserve available water supplies, and ultimately allowed the District to return to normal rates sooner than anticipated.

Why don’t you just penalize those that waste and use the most?

The rates did exactly that.  The ones that used the most amount of water are the ones who had the highest bills.  In a year where water supply was expected to be extremely limited, watering grass was forced to be reduced or eliminated all together.  Those that chose to keep their grass alive while others let their lawns go dormant were the same ones who were charged the most.

Raising rates doesn’t magically make more water, so this had to just be a money grab.

No, raising rates doesn’t magically make more water, and the district never made that claim.  Research has shown repeatedly that higher tier water rates create a direct financial incentive to reduce water use.  This in turn results in water being left in reservoirs for later use.  Additionally, reduced water sales often result decreased revenue for the district.

Still, higher rates have to generate more revenue for the district.  What are you doing with the “extra” money?

The temporary conservation rates were implemented to reduce water demand during a period of uncertainty regarding available water supplies. While the rates did generate additional revenue from customers who chose to use large amounts of water, that revenue has been dedicated to projects and programs that directly benefit the District's customers and water system.

Additional revenue from the conservation rates has been used for three primary purposes:

1. Smart Meter Installation – To accelerate the District's smart meter program, allowing customers to monitor their water use through the customer portal on a daily basis, identify leaks more quickly, and make informed decisions about their water consumption.  These meters were installed at no additional costs to customers.
2. Water Supply Leases – To help secure additional water supplies through both short-term and long-term water leasing arrangements, improving the District's ability to meet future demands.
3. Infrastructure Improvements – To fund capital improvement projects that maintain, replace, and improve critical water system infrastructure.

To provide additional transparency, water revenue for June and July 2025 totaled $1,129,000.60. During June and July 2026, when the temporary conservation rates were in effect, water revenue totaled $1,275,837.25, an increase of $146,836.65.

However, the District also invested those funds directly back into customer-focused programs. During the same period, the District installed 492 smart meters at a cost of $98,400 and provided $62,971 in leak adjustments and conservation incentives. Combined, these expenditures totaled $161,371, exceeding the additional revenue generated by $14,534.35.

As a result, the temporary conservation rates did not create a financial windfall for the District. Instead, additional revenue was reinvested into conservation programs, water supply reliability, and infrastructure improvements that benefit all customers while helping ensure the long-term sustainability of the water system.

It appears that you used your new building as an excuse to raise rates.

No. The new office plans began 14 years before the drought began and the water situation became critical.  For many years the district’s operations were split between a location in Naples and the Vernal Office, and it created challenges in operating the system efficiently.  This led the board to sell the existing building and put that money towards the new building.  The remaining funds were acquired via a CIB loan/grant and the use of capital improvement funds already set aside. 

What effort is the district taking to secure the water it lost and acquire more water for the future?

Very recently the district was able to settle the legal dispute it had with Ashley Central Irrigation Company which provides a long-term lease agreement with guaranteed amounts of water, with additional lease opportunities being available.  It also provided a long-term rate structure that allows the district to budget accordingly. 

The district is also completing a water development study in conjunction with Vernal City to explore multiple avenues of developing additional water for culinary use.  This study will be released to the public once it has been adopted.  However, the district is in strong support of developing Green River Water and Flaming Gorge water.  This would require significant infrastructure to be built but would be an avenue to bring water resources to the valley.

Why are there four culinary providers.  Seems like a waste!

There is a long and complicated history of why there are four providers.  Ashley Valley and Vernal City twice in have explored the possibility of combining districts into one entity in recent years.  This has proved to be incredibly complex in part due to the different types of legal entities that exist today.  For example,  a Special Service District vs Municipality. (City government).  While there is a possibility of combining or creating one big new district, it would take a lot more than a simple vote or agreement to make it happen, and even then, there might be restrictions on how water could be delivered to the new entity.

I heard that you needed conservation so that you could let a data center be built.

No. Ashley Valley Water and Sewer are not aware of any plans for a Data center and have not been approached about facilitating development of a Data Center.  

All the water comes from the same place, so why is AVWSID’s rates so much higher.  Vernal and Maeser and Jensen didn’t raise theirs!

Utah has a long history of Water Rights Law that begin in the late 1800s.  Over the years, modifications and changes have been implemented.  Utah Water Law dictates things like: Place and Time of Use; Quantity of Water that can be used; Flow Rates, Storage, Points of Diversion, Re-Use, Return Flows; Type of Use; and more.  So while the water may come from the same watersheds, the District can’t just take the water because our customers want more--just like no one in Utah wants California, Nevada, Arizona and New Mexico to take our water. Nor is it right for AVWSID to take water from irrigation companies, industrial users, and other water right holders.  The district has a limit and is required to stay within that limit. 

If you have enough water already to rescind rates, then that means you never should have raised the rates at all. 

No.  That’s not what that means.  What it means is that higher rates, while painful, actually got customers to consider their water use habits, make changes, and the savings that were realized changed the projections for the year.  The additional water in the lease agreement and monsoons solidified that there should be enough water to last throughout the irrigation season.  Customers should continue to water wisely throughout the rest of the year as reservoir levels will impact next year’s supply.  Ultimately, its easy to look back with the knowledge from today and be critical of the decisions that were made.  However, the district board elected to be aggressively proactive and cautious with water supplies to ensure water lasted into September and October. It would have been worse to have no drinking water than to have two months of higher bills and conservation requirements. 

So, you’ve rescinded the rates back to normal, when are you going to refund my money and are you going to replant my grass?

The District understands that some customers experienced higher water bills during the period when the temporary conservation rates were in effect. Those rates were adopted in response to anticipated water supply conditions and were designed to encourage reduced outdoor water use during a period of uncertainty.  Customers achieved record reductions in water use through significant community participation and conservation efforts; which together with improved supply conditions, allowed the District to return rates to normal sooner than anticipated.

The District provided extensive public outreach regarding the temporary rate structure prior to implementation, including information on how higher levels of outdoor water use would significantly raise billing amounts. Customers who continued to use large volumes of water for landscape irrigation did so with notice of the applicable rates. Because the charges were assessed in accordance with the duly adopted rate schedule that was in effect at the time the water was used, the District is unable to provide refunds for those bills.

The District's primary obligation is to provide a safe and reliable supply of culinary water for essential indoor uses. (as required by state and federal drinking water regulations.) While the District has historically been able to provide abundant water for outdoor irrigation, water supply conditions required a conservation-focused approach during this period.  The District considered research and recommendations regarding the minimum irrigation necessary to maintain healthy turf grass in Utah's climate in developing the temporary rates. The rate structure was designed to preserve access to the minimum amount of water generally needed to keep lawns alive while encouraging customers to reduce non-essential outdoor consumption. For these reasons, the District is unable to reimburse customers for landscape damage or replace grass or other vegetation.

 

"The District greatly appreciates the extraordinary conservation efforts demonstrated by our customers. Those efforts resulted in record water savings and played a significant role in preserving available supplies and allowing the District to return to normal rates sooner than anticipated."