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3.1 Weather <br /> <br /> In water use forecasting, it is typical to "weather normalize" base year water use. Water <br /> use tends to increase with hot, dry weather and decrease with cool, wet weather. Hence, it <br /> is important to adjust for abnormal weather patterns in order to establish an unbiased <br /> starting point for the forecasts. <br /> <br /> We collected monthly rain and daily maximum temperature data from the National <br /> Atmospheric and Oceanic Administration for the Redwood City weather station over the <br /> period 1948 to date. Our analysis of this data shows that weather during the calendar year <br /> 2000 was closer to normal than any other year in the series. This simplifies the weather <br /> normalization task as the 2000 water use data are already effectively weather normalized. <br /> The annual weather values for 2000 and normal are shown in Exhibit 4. <br /> <br /> Exhibit 4. Weather for Year 2000 <br /> Description 2000 Normal <br /> Annual Rain (inches) 19.57 20.21 <br /> <br /> Annual Average of Daily Max <br /> Temperature (°F) 71.0 71.3 <br /> <br /> 3.2 Water Prices <br /> <br /> Changes in water prices are also known to change customers' behavioral decisions <br /> regarding water use. Following the first law in economic demand theory, as the real price <br /> of a commodity increases, the quantity demanded by consumers decreases. <br /> <br />A review of RWC water prices shows they have remained relatively stable over recent <br />years after adjusting for inflation. This finding of rate stability again simplifies the <br />analysis as there is no need to make water price adjustments to base year water use. <br />Appendix E contains the 2002 water price schedule. <br /> <br />3.3 Water Conservation Technologies <br /> <br />Water fixtures have tended to become more water efficient over time because of <br />improvements in water conservation technologies. In this study, we specifically account <br />for known water using efficiencies occurring with toilets and clothes washers. These are <br />the two largest end uses of indoor residential water use, making up about half of total use. <br /> <br />Toilet manufactures came out with 1.6 gallon per flush toilets, known as ultra-low flush <br />toilets or ULFTs, in 1989. Toilets before this time used 3.5 gallon per flush or more. In <br />January 1992, a California Plumbing Code change required all new toilets to be ULFTs. <br />Many older, less-efficient toilets were still being sold, however, at this time. A Federal <br />plumbing code change effective January 1994 mandated ULFTs be used in all new <br /> <br /> Page 5 <br /> <br /> <br />