The Oklahoma Cooperative Extension Service periodically issues revisions to its publications. The most current edition is made available. For access to an earlier edition, if available for this title, please contact the Oklahoma State University Library Archives by email at libscua@okstate.edu or by phone at 405-744-6311

Adams, Damian C.

Boyer, Christopher N.

Boyer, Tracy

Sanders, Larry D.

Smolen, Michael D.

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Division of Agricultural Sciences and Natural Resources  •  Oklahoma State UniversityAGEC-1017Oklahoma Cooperative Extension Fact Sheets are also available on our website at: http://osufacts.okstate.eduOklahoma Cooperative Extension ServiceTracy BoyerAssociate Professor, Department of Agricultural EconomicsLarry D. SandersProfessor, Department of Agricultural EconomicsDamian C. AdamsAssistant Professor, University of FloridaChristopher N. Boyer Assistant Professor, University of TennesseeMichael D. SmolenProfessor Emeritus, Department of Biosystems and Agricultural EngineeringIntroduction The price of water varies across the state by community and category of user. Whether living in a city or a rural commu-nity, water pricing is an important component of monthly utility costs. Not only do prices affect the household’s budget, they also influence how to efficiently use water. The cost of water is one factor in conservation management of an increasingly scarce resource. Water rates (the prices the utility charges for water) can be an effective conservation tool (see AGEC-1055 Municipal Water Conservation in Oklahoma: Background, Issues & Options).  Conservation can help communities meet both long-term and short-term challenges. In some parts of the state, water infrastructure and supply are not keeping pace with popula-tion growth. From 1950 to 2014, the population of Oklahoma grew by 77 percent (U.S. Census2). Periodic droughts and lifestyle changes have also led to frequent shortages of water supplies in Oklahoma. Water conservation pricing is one of many tools that communities can use to help manage water use. This Fact Sheet provides information on average water rates and rate structures including conservation pricing in Oklahoma and presents some pricing alternatives. Water Rates: High or Low? There’s a class example of the “paradox of value” in eco-nomics referred to as “water and diamonds.”  Why is water, an Water Rate Structure:  A Tool for Water Conservation in Oklahoma11  The authors appreciate the review comments of Dave Shideler and Dave Engle, Oklahoma State University, and assistance from Ben Tong, Research Assistant, Department of Agricultural Economics, Oklahoma State University.2 1950 Oklahoma census was 2,193,000, and 2014 census was 3,878,051.essential ingredient to all living things, so much cheaper than diamonds, which are a luxury and not needed to maintain life? The short-hand answer is that water is relatively much less scarce than diamonds, and the typical person has relatively less use for another diamond, as compared to another glass of water. However, as water becomes more scarce, that trade-off begins to change, and when survival depends on that next glass of water, its value grows by orders of magnitude. While it is not unusual for residents to complain about taxes and utility bills, especially when there are discussions of raising them, the discussion below will suggest that the cost of municipal water is relatively inexpensive for most of us. In fact, most rates are so low, residents are probably paying mostly for the convenience of water and nearly nothing for the water itself.Water Rate Structures: Block Pricing Consumer response to changing water rates varies by community size, seasons, weather, household income and education about water availability. Block pricing refers to charg-ing flat rates for different segments of consumers. Residential rates may be higher than commercial rates to encourage economic development, for example. In communities facing water shortages, one way to reduce water use is by charging higher prices. A system of higher rates for higher-volume users is called conservation pricing. Conservation pricing provides an incentive for users to reduce non-essential water use like outdoor irrigation, to reduce water waste and to adopt water-conserving technologies and behaviors. Such responsive-ness can vary with season, weather and the range of price changes. Evidence from Oklahoma City households (2009 to 2013) shows residential water demand was not responsive to increases in water price, except for high consumption pe-riods such as July and August. In the range of the unit water prices of $2.26 to $2.55 per 1,000 gallons (3.79 m3), water demand was relatively unchanged. Household parcel size, income and average monthly temperature were positively related to water demand, while rainfall, household age and water price negatively influenced water demand (Ghimire et al, forthcoming). Lack of rainfall had a positive effect on water demand during the drought, perhaps for bathing/swimming or for maintaining the lawns during the drought period. Increasing rates for all users, however, may have unac-ceptable consequences. There is a particular concern for low-income consumers whose utility bills can be a significant AGEC-1017-2burden. A common solution is to use block pricing, where dif-ferent volume users are charged a different rate. This approach has been used to provide a low-cost resource to industries needing large volumes of water. When water conservation is the issue, block pricing maintains low cost for small-volume users, but charges more for high-volume users.  There are a number of water rate structures possible with block pricing, but the most common ones are inclining block rates, declining block rates and uniform rates. A “block” is a quantity of water for which the price per thousand gallons is set. In most Oklahoma water systems, a block is 5,000 gal-lons. Each 5,000-gallon block may have a different per unit rate. With a Declining Block Rate the price goes down as usage goes up because the utility charges a lower price per thousand gallons for higher-use blocks as shown in Figure 1.  The declining block rate structure provides cheaper water to high volume users with little incentive to conserve water. With Uniform Rates (not shown), the utility charges the same per 1,000 gallons for all levels of water use. With an Inclining Block Rate the price goes up with use because the utility charges a higher price per 1,000 gallons for higher-use blocks as shown in Figure 2. Inclining rates are known to reduce both average and peak water demand (Beecher et al. 1994).  Oklahoma Municipal Rate Structures Most Oklahoma communities used declining block rates (DBR). Residential rates are per household in Table 1. In 2013, Oklahoma had 2.55 people per household; thus, state aver-age consumption is 65 gal./day/person, at about 21 cents/person/day. Small community consumption is about 60 gal./day/person, at about 23 cents/person/day. Small mid-size community consumption is about 73 gal./day/person, at about 17 cents/person/day. Large mid-size community consumption is about 81 gal./day/person, at about 14 cents/person/day. Large community consumption is about 118 gal./day/person, at about 8 cents/person/day.   While all communities are different, there are some gen-eralizations that can be made from the information in Table 1. Average consumption increases as communities increase in population, nearly doubling from small communities with up to 5,000 people consuming about 154 gallons/day/house-hold, to the largest communities with up to 100,000 people consuming about 300 gallons/day/household. Rates gener-ally decline for the higher volume consumers in communities up to 50,000 people. Commercial water rates are lower than residential rates in communities of 50,000 or less. With the average rate less than $0.25/day/person in all communities, marginal increases in those rates are likely to go unnoticed. Many factors influence water prices in communities, includ-ing the age and condition of infrastructure, and water quality and treatment requirements. In many cases, communities may have raised rates to address new infrastructure needs or water quality regulations.3 Why is this important?  Many Oklahoma communities will need to address water shortages at some point in time. Water rates can be effective conservation tools for managing shortages in both the short-term (e.g., from droughts) and long-term (e.g., from weather pattern change or population growth). Inclining block rate pricing is just one of numerous conservation rate structures that could be used to help keep water demand equal with available supply. See Table 2 for examples of alternative water rate structures. Conclusion Most municipal water systems in Oklahoma use water rate structures that generally do not encourage conservation, preferring declining block or uniform rates. However, some smaller communities have moved toward an inclining block structure rewarding conservation. Rate structures and average rates may have a strong impact on how efficiently residents use water, and may affect water system revenue, water con-sumption and other factors important for water systems. 3  Usage and interest in conservation are related to the conditions of the time. Most of Oklahoma was in various stages of drought for 2011 to early 2015.5,000 10,000Quantity of Water$5$4$3Price per 1,000 gallonsGallons per monthPrice of WaterFigure 1. Example of Declining Block Rates.      Figure 2. Example of Inclining Block Rates.  5,000 10,000Quantity of Water$5$4$3Price per 1,000 gallonsGallons per monthPrice of WaterAGEC-1017-3For more informationBeecher, J.A., P.C. Mann, Y. Hegazy, and J.D. Stanford. (1994). Revenue Effect of Water Conservation and Conserva-tionPricing: Issues and Practices. National Regulatory Research Institute of Columbus, Ohio. Boyer, Tracy, Kanza, Patrick, Ghimire, Monika, and Moss,Justin. forthcoming 2015. Household Adoption of Water Conservation and Resilience Under Drought: The Case of Oklahoma City Water Economics and Policy. Water Ecnomics and Policy. Elsevier. Table 2. Summary of Alternative Conservation Rate Structures.Rate Structure Description.Drought Demand Rates are higher during drought periods.Excess-Use Prices are much higher for above-average water use.Inclining Block Price per block increases as water use increases.Indoor/Outdoor Prices for indoor use are lower than prices for outdoor use. This requires separate meters.Penalties Charges customers for exceeding allowable limits of water use.Scarcity Pricing Cost to develop new supplies is added to the bills of all users.Seasonal Pricing Water rates are higher during the season of higher demand (usually summer).Sliding-Scale The unit price increases, based on average consumption.Spatial Pricing Users pay for the actual cost of supplying water to their location. Those farther from the central water source pay more.Time-of-Use Water rates are higher during peak hours or peak days of the week.Water Budget Block rates are defined uniquely for each customer, based on an efficient level of water use for that cus-tomer. Source: Vickers (2001), Beecher et al. (1994), Mayer et al. (1998).Table 1. Summary of Residential and Commercial Water Use and Rates, Oklahoma, 2014. Municipalities (pop.) up to 5,000 5,001-10,000 10,001-50,000 50,001-100,000 State AverageAvg. Mo. Consumption  (Gal.) 4,608 5,553 6,202 9,000 4,875Avg. Daily Consumption (Gal.)  153.6 185.1 206.7 300 162.5Res. Min. Charge ($/month) 17.33 13.44 10.49 5.82 16.2 (6.6) (5.3) (2.6) (0.57) (6.6)5,000 Gal. Charge ($/month) 30.77 25.89 23.06 22.47 29.53 (11.3) (6.6) (5.0) (5.6) (10.7)10,000 Gal. Charge ($/month) 51.19 43.1 40.53 46.19 49.36 (19.8) (10.9) (10.4) (10.1) (18.7)50,000 Gal. Charge ($/month) 208.97 190.8 189.61 250.65 204.97 (89.1) (52.8) (52.4) (54.8) (82.3)200,000 Gal. Charge ($/month) 800.52 779.56 755.27 1014.89 794.48 (387.2) (186.5) (238.1) (225.1) (353.1)Values in Parenthesis are Standard Deviations.Analysis of Data from: Oklahoma Municipal League, 2014.Mayer, P.W., W.B. DeOreo, E.M. Opitz, J.C. Kiefer, W.Y. Davis, et al. (1998). Residential End Uses of Water. Denver, Colorado: American Water Works Association. Oklahoma Water Resources Board [OWRB]. (2007). Oklahoma Comprehensive Water Plan: 2007 Status Report. Okla-homa City, Oklahoma: Oklahoma Water Resources Board. AGEC-1017-4Oklahoma State University, in compliance with Title VI and VII of the Civil Rights Act of 1964, Executive Order 11246 as amended, and Title IX of the Education Amendments of 1972 (Higher Education Act), the Americans with Disabilities Act of 1990, and other federal and state laws and regulations, does not discriminate on the basis of race, color, national origin, genetic informa-tion, sex, age, sexual orientation, gender identity, religion, disability, or status as a veteran, in any of its policies, practices or procedures.  This provision includes, but is not limited to admissions, employment, financial aid, and educational services. The Director of Equal Opportunity, 408 Whitehurst, OSU, Stillwater, OK 74078-1035; Phone 405-744-5371; email: eeo@okstate.edu has been designated to handle inquiries regarding non-discrimination policies: Director of Equal Opportunity. Any person (student, faculty, or staff) who believes that discriminatory practices have been engaged in based on gender may discuss his or her concerns and file informal or formal complaints of possible violations of Title IX with OSU’s Title IX Coordinator 405-744-9154. Issued in furtherance of Cooperative Extension work, acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture, Director of Oklahoma Cooperative Extension Service, Oklahoma State University, Stillwater, Oklahoma. This publication is printed and issued by Oklahoma State University as authorized by the Vice President, Dean, and Director of the Division of Agricultural Sciences and Natural Resources and has been prepared and distributed at a cost of 20 cents per copy.  Revised 0615 GH.The Oklahoma Cooperative Extension Service Bringing the University to You!for people of all ages.  It is designated to take the knowledge of the university to those persons who do not or cannot participate in the formal classroom instruction of the university.• It utilizes research from university, government, and other sources to help people make their own decisions.• More than a million volunteers help multiply the impact of the Extension professional staff.• It dispenses no funds to the public.• It is not a regulatory agency, but it does inform people of regulations and of their options in meet-ing them.• Local programs are developed and carried out in full recognition of national problems and goals.• The Extension staff educates people through personal contacts, meetings, demonstrations, and the mass media.• Extension has the built-in flexibility to adjust its programs and subject matter to meet new needs. Activities shift from year to year as citizen groups and Extension workers close to the problems advise changes.The Cooperative Extension Service is the largest, most successful informal educational organization in the world. It is a nationwide system funded and guided by a partnership of federal, state, and local govern-ments that delivers information to help people help themselves through the land-grant university system.Extension carries out programs in the broad catego-ries of  agriculture, natural resources and environment; family and consumer sciences; 4-H and other youth; and community resource development. Extension staff members live and work among the people they serve to help stimulate and educate Americans to plan ahead and cope with their problems.Some characteristics of the Cooperative Extension system are:•  The federal, state, and local governments cooperatively share in its financial support and program direction.• It is administered by the land-grant university as designated by the state legislature through an Extension director.• Extension programs are nonpolitical, objective, and research-based information.• It provides practical, problem-oriented education 

Water rate structure: A tool for water conservation in Oklahoma

 Increasing rates for all users, however, may have unac-ceptable consequences. There is a particular concern for low-income consumers whose utility bills can be a significant burden. A common solution is to use “block pricing,” where dif-ferent volume users are charged a different rate. This approach has been used to provide a low-cost resource to industries that need large volumes of water. When water conservation is the issue, block pricing maintains low cost for small-volume users but charges more for high-volume users.  There are a number of water rate structures possible with block pricing, but the most common ones are inclining block rates, declining block rates, and uniform rates. A “block” is a quantity of water for which the price per thousand gallons is set. In most Oklahoma water systems, a block is 5,000 gal-lons. Each 5,000-gallon block may have a different per unit rate. With a Declining Block Rate the price goes down as usage goes up because the utility charges a lower price per thousand gallons for higher-use blocks as shown in Figure 1.  The declining block rate structure provides cheaper water to high volume users with little incentive to conserve water. With Uniform Rates (not shown), the utility charges the same per thousand gallons for all levels of water use. With an In-clining Block Rate the price goes up with use because the utility charges a higher price per thousand gallons for higher Division of Agricultural Sciences and Natural Resources  •  Oklahoma State UniversityAGEC-1017Oklahoma Cooperative Extension Fact Sheets are also available on our website at: http://osufacts.okstate.eduOklahoma Cooperative Extension ServiceDamian C. AdamsAssistant Professor, Department of Agricultural EconomicsChristopher N. BoyerGraduate Student, Department of Agricultural EconomicsMichael D. SmolenProfessor and Water Quality Coordinator, Department of Biosystems and Agricultural EngineeringIntroduction The price you pay for drinking water and sewer access varies across the state. Whether you live in a city or a rural community, water pricing is an important component of your monthly utility costs. Not only do prices affect your house-hold’s budget, they also influence how efficiently you and your neighbors use water. When water is cheap, people do not worry much about waste; when water is expensive they might increase efficiency – repair water leaky faucets, install water-conserving appliances, and cut back on outdoor irriga-tion. The fact is, water rates (the prices the utility charges you for water) can be an effective conservation tool.  Conservation can help communities meet both long-run and short-run challenges. In some parts of the state, water infrastructure and supply are not keeping pace with popula-tion growth. From 1970 to 2000, the population of Oklahoma grew by 36 percent (OWRB, 2007). During the same pe-riod, the number of groundwater and surface water permits nearly tripled (OWRB, 2007). Periodic droughts and lifestyle changes have also led to frequent shortages of water sup-plies in Oklahoma. At the peak of the drought period ending in 2007, water supplies around the state were dangerously low. Water conservation pricing is one of many tools that communities can use to help manage water use. This Fact Sheet provides information on average water rates and rate structures, including conservation pricing, in Oklahoma and presents some pricing alternatives that might help manage water use. Water Rate Structures: Block Pricing Water pricing can have a significant impact on water use. In communities facing water shortages, one of the most effective ways to reduce water use (and waste) is by charg-ing higher prices. A system of higher rates for higher-volume users is called conservation pricing. Conservation pricing provides an incentive for users to reduce non-essential water use like outdoor irrigation, to reduce water waste, and to adopt water-conserving technologies and behaviors. Based on the law of demand – as the price of water increases, water use decreases. Water Rate Structure: A Tool for Water Conservation in Oklahoma5,000 10,000Quantity of Water$5$4$3Price per 1,000 gallonsGallons per monthPrice of WaterFigure 1. Example of Declining Block Rates.      AGEC-1017-2Figure 2. Example of Inclining Block Rates.  use blocks as shown in Figure 2. Inclining rates are known to reduce both average and peak water demand (Beecher et al. 1994). Oklahoma Water and Sewer Rates In 2002 and 2008, the Oklahoma Municipal League sur-veyed water supply managers across Oklahoma for information on drinking water and sewer rates (OML, 2008). The surveys asked the price charged to water users for 5,000 gallons per month and 10,000 gallons per month. We calculated the cost per 1,000 gallons at each level, and classified municipalities as having inclining (conservation) rates if the rate was higher at 10,000 gallons, declining block if the rate was lower at 10,000 gallons, and uniform if both rates were approximately the same. We also examined how average prices and rate structures changed from 2002 to 2008. Rate Structures Most Oklahoma communities used declining block rates (DBR) in both 2002 and 2008 (Table 1), but since 2002, the use of DBR fell overall. Notably, there was a 50 percent de-crease in the use of DBR by communities more than 100,000 by 2008. However, communities with 10,000 to 20,000 and 20,000 to 50,000 people increased their use of DBR.  Although most communities use DBR, smaller communi-ties are moving toward inclining block rates (IBR). In 2002, no communities with populations less than 20,000 reported using IBR. By 2008, however, only smaller communities (less than 50,000) were using IBR, and all communities more than 50,000 that had been using IBR in 2002 switched to uniform or declining block rates. There was no change in the percent of communities using IBR for those sized 20,000 to 50,000 (8 percent) or more than 100,000 (0 percent). Only larger cities (more than 50,000) saw a growth in the use of uniform rates. Average Rates Rate structures only paint half the picture. Conservation can also be affected by average water rates. We calculated the average rates charged per 1,000 gallons, reported in Table 2. In 2002, the first 5,000 gallons cost an average of $4.28 to $5.59, and the next 5,000 gallons cost $3.76 to 4.82 on average. Communities in the 50,000 to 100,000 population range charged the lowest average price for the first 5,000, but there was not a clear pattern between community size and price for the next 5,000  gallons. In 2008, the first 5,000 gallons cost an average of $5.62 to $6.82, and the next 5,000 gallons cost $5.22 to $6.37 on average. Generally, smaller communities charge more for the first 5,000 gallons (except for communities ranging in populations of 20,000 to 50,000), but the results for the next 5,000 gallons are mixed.  Drinking water rates have generally increased from 2002 to 2008. During this period, the overall average prices charged for drinking water and sewer rose 26 percent for the first 5,000 gallons (from $5.34 to $6.71), and 29 percent for the next 5,000 gallons (from $4.33 to $5.57). Communities in the 50,000 to 100,000 range saw the biggest increase, with a 42 percent jump in price for the first 5,000 gallons, and a 39  percent rise in the cost of the next 5,000 gallons. Higher rates may not necessarily reflect conservation efforts. There are many factors influencing water prices in your community, including the age and condition of infrastructure, and water quality and treatment requirements. In many cases, commu-nities may have raised rates to address new infrastructure needs or water quality regulations. Why is this important?  Many Oklahoma communities will need to address water shortages at some point in time. Water rates can be effective Table 1. Oklahoma Water Rate Structures (including sewer) by Population.Community Size (Population)        Inclining Block Rate                          Uniform Rate                         Declining Block Rate  2002 2008 2002 2008 2002 2008Less than 1,000 0% 11% 0% 0% 100% 89%1,000 to 10,000 0% 8% 8% 4% 92% 88%10,000 to 20,000 0% 6% 12% 0% 88% 94%20,000 to 50,000 8% 8% 15% 0% 77% 92%50,000 to 100,000 20% 0% 0% 20% 80% 80%More than 100,000 0% 0% 0% 50% 100% 50%Total Population 2% 9% 8% 3% 90% 88%5,000 10,000Quantity of Water$5$4$3Price per 1,000 gallonsGallons per monthPrice of WaterAGEC-1017-3conservation tools for managing shortages in both the short-term (e.g., from droughts) and long-term (e.g., from climate change or population growth). Inclining block rate pricing is just one of numerous conservation rate structures that could be used to help keep water demand in line with available supply. See Table 3 for examples of alternative water rate structures. Conclusion Most municipal water systems in Oklahoma use water rate structures that generally do not encourage conservation, preferring declining block or uniform rates. However, some smaller communities have moved toward an inclining block structure that rewards conservation. Average rates for drink-ing water and sewer increased by more than 26 percent from 2002 to 2008, and rate increases were generally higher in the larger communities. A notable exception is the 0 to 5,000 gallon block for cities with more than 100,000 people. Other rate structures were shown that communities could consider when deciding how to manage their water resources. Rate structures and average rates may have a strong impact on Table 2. Summary of 2002 and 2008 Rates (including sewer, $ per 1,000 gallons).Community Size  Price per 1,000 Price per 1,000 Change in price,  Percent change,(Population) gallons, 2002 gallons, 2008 2002 to 2008  2002 to 2008  Up to 5,000  More than Up to 5,000 More than Up to 5,000 More than Up to 5,000 More than gallons 5,000 gallons gallons 5,000 gallons gallons 5,000 gallons gallons 5,000 gallonsLess than 1,000 5.59 4.29 6.82 5.53 1.23 1.24 22% 29%1,000 to 10,000 5.54 4.40 6.80 5.61 1.26 1.21 23% 28%10,000 to 20,000 5.00 4.35 6.04 5.30 1.04 0.95 21% 22%20,000 to 50,000 4.99 4.39 6.47 5.59 1.48 1.20 30% 27%50,000 to 100,000 4.28 3.76 6.09 5.22 1.81 1.46 42% 39%More than 100,000 5.53 4.82 5.62 6.37 0.09 1.55 2% 32%Total Average Price 5.34 4.33 6.71 5.57 1.37 1.24 26% 29%how efficiently you and your neighbors use water, and may affect water system revenue, water consumption, and other factors important for water systems. For more informationBeecher, J.A., P.C. Mann, Y. Hegazy, and J.D. Stanford. (1994). Revenue Effect of Water Conservation and Conserva-tion Pricing: Issues and Practices. National Regulatory Research Institute of Columbus, Ohio. Mayer, P.W., W.B. DeOreo, E.M. Opitz, J.C. Kiefer, W.Y. Davis, et al. (1998). Residential End Uses of Water. Denver, Colorado: American Water Works Association. Oklahoma Municipal League [OML]. (2008). Oklahoma Mu-nicipal Utility Costs. Oklahoma City, Oklahoma: Oklahoma Municipal League. Oklahoma Water Resources Board [OWRB]. (2007). Oklahoma Comprehensive Water Plan: 2007 Status Report. Okla-homa City, Oklahoma: Oklahoma Water Resources Board. Vickers, A. (2001). Handbook of Water Use and Conservation: Homes, Landscapes, Businesses, Industries, and Farms. Amherst, Massachusetts: WaterPlow Press.  Table 3. Summary of Alternative Conservation Rate Structures.Rate Structure Description.Drought Demand Rates are higher during drought periods.Excess-Use Prices are much higher for above-average water use.Inclining Block Price per block increases as water use increases.Indoor/Outdoor Prices for indoor use are lower than prices for outdoor use. This requires separate meters.Penalties Charges customers for exceeding allowable limits of water use.Scarcity Pricing Cost to develop new supplies is added to the bills of all users.Seasonal Pricing Water rates are higher during the season of higher demand (usually summer).Sliding-Scale The unit price increases based on average consumption.Spatial Pricing Users pay for the actual cost of supplying water to their location. Those farther from the central water source pay more.Time-of-Use Water rates are higher during peak hours or peak days of the week.Water Budget Block rates are defined uniquely for each customer, based on an efficient level of water use for that cus-tomer. Source: Vickers (2001), Beecher et al. (1994), Mayer et al. (1998).AGEC-1017-4Oklahoma State University, in compliance with Title VI and VII of the Civil Rights Act of 1964, Executive Order 11246 as amended, Title IX of the Education Amendments of 1972, Americans with Disabilities Act of 1990, and other federal laws and regulations, does not discriminate on the basis of race, color, national origin, gender, age, religion, disability, or status as a veteran in any of its policies, practices, or procedures. This includes but is not limited to admissions, employment, financial aid, and educational services.Issued in furtherance of Cooperative Extension work, acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture, Robert E. Whitson, Director of Cooperative Exten-sion Service, Oklahoma State University, Stillwater, Oklahoma. This publication is printed and issued by Oklahoma State University as authorized by the Vice President, Dean, and Director of the Division of Agricultural Sciences and Natural Resources and has been prepared and distributed at a cost of 20 cents per copy. 0909 GH.The Oklahoma Cooperative Extension Service Bringing the University to You!for people of all ages.  It is designated to take the knowledge of the university to those persons who do not or cannot participate in the formal classroom instruction of the university.•	 It	utilizes	research	from	university,	government,	and other sources to help people make their own decisions.•	 More	than	a	million	volunteers	help	multiply	the	impact of the Extension professional staff.•	 It	dispenses	no	funds	to	the	public.•	 It	is	not	a	regulatory	agency,	but	it	does	inform	people of regulations and of their options in meet-ing them.•	 Local	programs	are	developed	and	carried	out	in	full recognition of national problems and goals.•	 The	 Extension	 staff	 educates	 people	 through	personal contacts, meetings, demonstrations, and the mass media.•	 Extension	has	the	built-in	flexibility	to	adjust	its	programs and subject matter to meet new needs. Activities shift from year to year as citizen groups and Extension workers close to the problems advise changes.The Cooperative Extension Service is the largest, most successful informal educational organization in the world. It is a nationwide system funded and guided by a partnership of federal, state, and local govern-ments that delivers information to help people help themselves through the land-grant university system.Extension carries out programs in the broad catego-ries of  agriculture, natural resources and environment; family and consumer sciences; 4-H and other youth; and community resource development. Extension staff members live and work among the people they serve to help stimulate and educate Americans to plan ahead and cope with their problems.Some characteristics of the Cooperative Extension system are:•		 The	 federal,	 state,	 and	 local	 governments	cooperatively share in its financial support and program direction.•	 It	is	administered	by	the	land-grant	university	as	designated by the state legislature through an Extension director.•	 Extension	programs	are	nonpolitical,	objective,	and research-based information.•	 It	provides	practical,	problem-oriented	education	

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Water rate structure: A tool for water conservation in Oklahoma

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