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The replacement of older models of pump motors with new, high-efficiency motors can be an effective means of conserving both energy and capital. To promote this method of conservation, in 1983 the Pacific Gas and Electric Company (PG&E) initiated a rebate program to encourage its water utility customers to install high-efficiency motors wherever possible. However, as the California Water Service Company (CWSC) found, rigorous analyses must be undertaken to determine whether the cost benefits of replacing older motors outweigh those of simply repairing them. In addition, utilities must be familiar with motor design, types of energy losses encountered in most motors, standards for testing motors' levels of operating efficiencies, and means of enhancing motor efficiency if they are to ensure the highest level of motor productivity for the lowest energy and capital costs. Includes 3 references, tables.