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Las Vegas Valley Water District rate setting madness, part 1

April 30th, 2008 by Brandon

I am working on a research paper for my Environmental Economics course. The process for setting rates is rather straightforward, albeit somewhat strange. Here’s (basically) how it works:

  1. The Las Vegas Valley Water District (LVVWD) performs environmental and economics studies, compares it to past data, as well as past goals, and then sets new goals based on the research.
  2. They form a citizen-committee and present their findings to this committee. The information presented is downright apocalyptic. Every presenter and slide is about how “If we don’t act now, we are all going to die.” This isn’t completely unfounded, as the valley is legitimately in a water crisis. But still…
  3. After 2-3 months of meeting, the committee makes recommendations on how to change rates, if that’s what they want to do at all (they can vote to do absolutely nothing). Of course, after several months of being hammered with end-of-the-world scenarios, it’s no surprise that they will recommend to increase rates.

I’m not completely against this process, but as an outsider, it almost seems as though the water district makes the process this way because they have low self-esteem and want to be able to say to the public-at-large, “Don’t be mad at us! Your neighbors were the ones who voted to do it!” when the rate hikes take effect.

By the way, as I read and learn more about it all, I’m actually of the opinion that rates should be increased way more than the committee voted for (which is a 50% increase, to take effect (I think) next year)…

But you can read more about that in a week or so when I post my full report here.

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