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The passage links tiered rates to three outcomes: (1) lower consumption (14% drop), (2) steadier finances (“revenue volatility eased”), and (3) equity protections (credits covering the baseline for low-income customers). It also notes some conservation persisting after rains, likely due to durable efficiency upgrades (“retrofitted fixtures”). Together, these details support A: the policy levered price signals to reduce discretionary use, safeguarded essential needs via a subsidized baseline, and smoothed budgets. B contradicts the credit provision. C ignores the evidence of continued (though smaller) conservation. D is the opposite of what planners observed. On Nelson–Denny inference items, integrate operational metrics with design features: tier thresholds and credits explain why conservation can rise without regressive impacts. The persistence of savings after the acute phase highlights habit and capital changes, a common theme in resource-policy passages that test your ability to separate short-term behavioral responses from longer-term structural shifts.