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Maximizing Revenue from Water Resources Management

Delve into strategies for optimizing revenue from surface water use, including pricing structure adjustments and rent collection. Explore the financial implications of water usage in various sectors and potential revenue streams.

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Maximizing Revenue from Water Resources Management

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  1. Scratching the Surface (Water) Elliot Wilkinson-Ray

  2. Surface Water 93% (roughly 445 million gallons per day) = private profit Current Revenue: • Public Supply: $ 35,000,000 • Wastewater Permits: $ 1,692,350 • Hydroelectric: $ 164,775,527 • Thermoelectric: $ 100,000,000 • Recreation: $ 109,096,309 • Total: $ 410,564,186 • There are other industrial uses

  3. Rent from Hydro • 5% of hydro revenue ($164,775,527) = $ 8,238,776.4 • End local electricity subsidy: = $ 7,500,000

  4. Thermoelectric Withdrawals

  5. Rent collection: • $0.05/1,000 gallons, (2% of the current wholesale water rate) = $ 7,600,000 • “52% of fresh surface water withdrawals in the US are for thermoelectric-power use. Establishing the right to tax this use in Vermont would have serious implications for the rest of the country.”

  6. Increasing Price Structure: • Base price ATC $3.20 eco valuation $.40 rent payment $0.00 /1,000 gals.=$3.60 • 2,000-40,000 gallons: ATC $3.20 ecovaluation $.40 rent payment $.80 /1,000 gals. =$4.40 • 40,000-100,000 gallons: ATC $3.20, ecovaluation $.40 rent payment $1.50 /1,000 gals. =$5.10 • 100,000+ gallons ATC $3.20, ecovaluation $.40 rent payment $ 2.50 /1,000 gals. =$6.10

  7. Rent collection: • Public Supply: 10% of public revenue: $ 3,500,000 *estimation* • Other use withdrawal fee: $.05/1,000 gallon (24 million gallons/day) = $438,000

  8. Total Rent Value • $ 8,238,776.4 - Hydro rent • $ 7,500,000 - End local electric subsidy • $ 7,600,000 - Thermo-electric use • $ 3,500,000 - Public Supply • $ 438,000 - Other use withdrawal fee • Total: $ 27,276,776

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