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February 2008

Save but pay more

We as consumers are often encouraged to save money by buying a cheaper product, or save time by buying a more efficient gadget or save lives by buckling up. Save, save, save is the American refrain, and we often comply.

Last summer we were told to save in our use of water. While some of the measures were forced upon us, we generally complied and cut our water consumption. After my hedge died, I started putting a bucket in my shower to catch the cold water until it runs hot. Then I put that water on my bushes. It all helped because city water customers have saved millions of gallons through conservation.

That’s why it’s ironic that we now have to pay more for water because saving means less water is used therefore the city earns less revenue. It’s not a big increase to most people; it’s just irritating. I think the same irony occurred several years ago when the price of electricity went up. When you’ve got a monopoly, it’s easy for a utility to make up lost revenue with a price hike.

I’ll give the city some slack since it has had the expense of tying into Wilson’s water system as a safeguard against the reservoir running dry. I know in the business world when less of your product is sold, you can’t automatically make up the lost revenue by raising prices. If you do, it is at your company’s peril. Instead, the smart business person looks at developing new products or saving here and there to bring income and expense back into line. I trust the city is doing that rather than only raising prices to make up the shortfall.

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