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Icicle watershed groups urge city to pursue tiered commercial water rates, target large hotel users
Summary
The Icicle Creek Watershed Council and partners presented data showing commercial accounts use about 40% of city water and proposed targeting the largest 20–25 commercial customers—many hotels—with conservation incentives, outreach and potential rate-class changes to reduce summer demand and support streamflow.
Representatives from the Icicle Creek Watershed Council and allied stakeholders told the Leavenworth City Council on March 11 that the city should consider creating a separate commercial customer class and tiered rates to encourage water conservation by hotels and other large commercial users.
Why it matters: Council and watershed speakers argued that reducing summer urban water use helps streamflow for fish, reduces pressure on water infrastructure and stretches supplies in a warming climate. Presenters said resident tiered rates are working and that a well-designed commercial program could produce conservation while minimizing impacts on businesses.
What was presented: Sharon Luntz, president of the Icicle Creek Watershed Council, described the group’s long-running restoration and streamflow efforts and said water conservation remains a central mission. A follow-up presentation by the council’s volunteers and former PUD staff consolidated city billing data for 2022–23 and found: roughly 250 commercial customers account for about 40% of the city’s water volume; roughly 21 of the largest commercial customers account for about half of that commercial use. Presenters said most of those high-use accounts are likely hospitality operations.
Proposals and options discussed: Presenters recommended the city consider: - Creating a separate customer class for hotels to enable a tailored tiered rate structure similar to residential tiers, with rates that reward reduced consumption; - Starting targeted outreach and voluntary conservation programs with the largest 20–25 commercial customers (hotel operators, resorts) including towel/linen reuse messaging, irrigation audits, and possible equipment rebates; - Piloting a case study with a willing hotel to measure savings and refine the structure before expanding.
Council and staff response: City staff confirmed smart meters and water-use data exist and can support customer-class analysis. Councilmembers and presenters flagged equity and customer-experience concerns and emphasized engagement with hotels, the Chamber of Commerce and lodging operators. Staff noted that classifying customers requires creating a separate customer class under state law and that initial data analysis is feasible given the relatively small universe of commercial accounts.
Next steps: Watershed presenters offered to support outreach and customer engagement. Councilmembers asked staff to gather further data and return with options for a pilot and the legal steps needed to create a separate commercial customer class.
Key quote: “Tiered water rates generally inspire conservation,” said Sharon Luntz, Icicle Creek Watershed Council president.
