Like many communities in Alberta, the Town of Okotoks uses a tiered water billing system that charges users for their actual consumption and is said to reduce peak water demand.
Considered a best practice in North America, the tiered billing approach, in conjunction with overall water conservation practices, is an effective way to reduce the demand for water and provide sustainable funding for the service, said Davey Robertson, the Town's water services manager.
“It certainly helps with reducing peak demands, especially during summer months, which is our biggest challenge as a water distribution system,” Robertson said.
There are three water consumption tiers for residential customers in Okotoks that see rates rise as consumption increases, in addition to a fixed base rate.
Tier 1 covers the first 23 cubic metres of water at $1.70 per cu. m, Tier 2 goes from 24 to 46 cu. m at $2.10, and Tier 3 is for more than 46 cu. m at $3.10.
One cubic metre of water equals 1,000 litres and consumption levels are for a two-month billing period.
Although Tier 1 tops out at 23 cu. m, a typical home in Okotoks regularly uses more water than that, Robertson said.
“Generally speaking, the average single-family home uses approximately 32 cubic metres over a billing period,” he said.
According to the Town’s website, average water use for the last half of 2023 varied according to the season.
July and August saw average use of 48 cu. m. The average dipped in September and October to 34 cu m. and in November and December it fell further to 26 cu. m.
“That number goes down in the winter months, when we don’t have outdoor watering,” he said.
Robertson explained the water uses associated with each tier and how outdoor water uses factor in.
“Tier one really reflects reasonable indoor usage for average family size and minimal outdoor usage,” he said.
“When you start getting into tier two, it supports larger families and reasonable outdoor use, and then tier three, we’re talking more above-average indoor and outdoor use.”
A portion of Tier 3 revenue supports the water conservation rebate program in Okotoks, Robertson said.
“That program, it’s been very successful,” he said. “It’s fully utilized on an annual basis.”
