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What is water’s value?
Over the last few months a lot of paper space has been used up talking about increased cost for your water, almost weekly news about EID and GDPUD wrangling with rising costs and lowering revenues; add a portion of CIP projects and debt service thrown in and you got a full plate. But I have yet to see discussions on what is the value of the water that a residential customer could relate to. How can one know if water costs are out of line unless you know what your water costs per some unit we might have a chance of understanding — say cost for 5 gallons of water — delivered.
This is where I task everyone reading this brief, ask yourself what would you say is a good price for 5 gallons of water delivered to your house? Come on now, play along … what do you guess?
Unfortunately that seems to be what most folks must do — guess — but we are confident we know water costs too much. See my logic? Hope so.
Next time you get your water bill do the following: Most water agencies state water usage in cubic feet. One cubic foot is equal to 7.48 gallons. Take your total water bill and divide the total gallons used and you get the cost of 1 gallon of water delivered. Multiply by 5 and you have the cost of 5 gallons delivered to your abode.
Did it match your guess of what 5 gallons of water costs at a good value?
Example calculation: Using an average cost of $1.50 per day and 300 gpd usage on 60-day cycle, the following is the calculation. Take the $90 bill and divide this by gallons used (2,406 cubic feet times 7.48 gal/cubic feet). $90 divided by 18,000 gallons used equals $0.005 a gallon. $0.005 times 5 gallons equals $0.025 or 2.5 cents per 5 gallons.