Conservation feebates

Proposes an economic system for municipal water authorities to achieve conservation targets while keeping revenues equal to costs. This system combines three separate tools. The first sets the water rate to cover the utility's costs. The second assigns customers allotments to water use. The third either charges a fee for use that exceeds the customer's allotment or hands out rebates for consumption below that allotment. The fees pay for the rebates - hence the term "feebate". Calculations and numerical examples are given. Although some municipalities in the USA have taken steps in the direction of a feebate plan, none have adopted a the approach described by the author in its entirety.