At a public hearing on
June 22, 2009, Pasadena City Council approved Pasadena Water & Power's
revised proposal to increase water rates. New rates will take effect July 1, 2009.
Fixed-Rate Charges Increases -
While for many years PWP’s water service revenues have remained
relatively flat, regular operational and maintenance costs incurred by our
community-owned utility have increased. PWP has had to borrow from its
reserve funds in order to continue its normal standard of operations. To
correct this cost/revenue imbalance and to ensure continued reliable
service, PWP will implement three separate increases
between 2009 and 2011 to the fixed rate charges on
water service bills, the Distribution and Customer (D&C) charge and the Fire
Protection Surcharge (FPS).
Block Rate
Restructure - On July 1 the Metropolitan Water District (MWD), from which PWP
receives 65% of its supply,
will decrease its allocation to Pasadena by 10% and begin
imposing steep penalty rates on PWP for consumption above our allocation. In addition, on September 1 MWD will raise its rates 19.7 percent.
In
response, PWP will restructure the
“blocks"that dictate which rate a
water user must pay. (The more water you use, the higher the block and
therefore the higher rate you pay.) It will reallocate
the thresholds of the three blocks that currently exist
and also add two new ones, Blocks 4 and 5. This
restructure is designed to reflect the true rising
cost of waterand send price signals to encourage water conservation.It is not designed
to penalize customers who are already conserving.
Modifications: Block 4 and
5 Credit and Rate Relief -
In the event
that citywide water consumption does not exceed its allocation from
MWD, customers who
have used and been charged for water in blocks 4 and 5 will receive credit
for such charges.
If a customer
is able to demonstrate that he has implemented specific water
conservation and efficiency measures from 2006-2008, he may apply
for rate relief from block 5.
Further
details on these modifications can be found in the
Agenda Report and will be posted online at a later date.
More
Background Information:
An initial rate increase proposal was
considered at a June 8 public hearing, which was continued to June 22 to
allow for more public comment and committee review. PWP returned to City
Council on June 22, 2009 with a revised proposal that included
modifications recommended by the Municipal Services Committee. The City
Council approved the revised proposal with the modifications and directed the City Attorney to
prepare amendments to the Water Rates Ordinance (PMC 13.20). Rate
changes will take effect on July 1, 2009. Read the June 8
agenda report and June
22 revised agenda report.
Under Water Rate Ordinance Section
13.20.030, three separate increases to theDistribution and Customer Charge (D&C)will occur over a three-year period (in July 2009,
20010 and 2011) to accommodate increased operation and maintenance
costs incurred by PWP. The D&C covers the ongoing cost of
distribution, water distribution system
maintenance, metering, customer service, and billing. The D&C is a fixed
charge.
Under Water Rate Ordinance Section
13.20.145, the Fire Protection Surcharge
(FPS)will increase
on July 1, 2009 to increase revenue by $250,000
and cover the increased
cost of maintaining, repairing, installing, and upgrading public fire
hydrants.
Under
Water Rate Ordinance Section 13.20.025, PWP proposes
to reallocatethe
widths ("thresholds") for Blocks, 1, 2, and 3
and the add blocks 4 and 5 to comply with cost of service requirements
and encourage water conservation. This will affect both Area A
(inside the city) and Area B
(outside the city).
Under Water Rate Ordinance 13.20.020
effective July 1, 2009 Area B, outside the city, water rates will
decrease from 35% to 25% over the inside City Rate.
The seasonal rate differential
between winter and summer rates will be adjusted from 6% to 3% to
reflect actual summer peaking costs.
The Water Bill Estimator
will help you calculate what the approximate cost difference would be if
the City Council approves the proposed rate changes.
The table
below shows the D&C and FPS increases,
effective July 1, 2009, and
two other D&C increases in
July 2010 and 2011.
Combined D&C and
FPS Increases Across Three Years
Meter Size
Current Monthly D&C
with FPS
July 2009
July 2010
July 2011
5/8" & 3/4"
$8.17
$11.07
$14.05
$17.50
1"
$15.52
$21.03
$26.70
$33.25
1 1/2"
$31.85
$43.73
$55.18
$68.41
2"
$73.59
$99.77
$126.62
$157.66
3"
$179.76
$243.58
$309.20
$385.08
4"
$276.60
$373.45
$474.86
$592.12
6"
$425.99
$578.51
$733.61
$912.95
8"
$693.73
$939.14
$1,192.67
$1,485.82
10"
$902.81
$1,222.11
$1,552.08
$1,933.60
12"
$1,023.12
$1,388.50
$1,761.31
$2,192.38
The table below shows the current and
proposed block widths and billing units (given in HCF) per block, as
well as the proposed addition of Blocks 4 and 5.
REALLOCATION OF BLOCK RATE
STRUCTURE
Effective July 1, 2009
MeterSize
Current
Block 1
Approved
Block 1
Current
Block 2
Approved
Block 2
5/8"
0-12 HCF*
0-8 HCF*
13-38 HCF*
9-24 HCF*
3/4"
0-12
0-8
13-38
9-24
1"
0-12
0-12
13-38
13-40
1 1/2"
0-40
0-22
41-325
23-86
2"
0-50
0-48
51-325
49-188
3"
0-150
0-116
151-1275
117-500
4"
0-150
0-225
151-1275
226-1,000
6"
0-400
0-500
401-3400
501-5,600
8"
0-400
0-500
401-3400
501-5,600
10"
0-400
0-500
401-3400
501-24,000
12"
0-400
0-500
401-3400
501-24,000
(Continued…)
MeterSize
CurrentBlock 3
Approved
Block 3
Approved Block 4
Approved Block 5
5/8"
≥ 39
HCF*
25-34 HCF*
35-46 HCF*
≥ 47
HCF*
3/4"
≥ 39
25-34
35-46
≥ 47
1"
≥ 39
41-60
61-90
≥ 91
1 1/2"
≥ 326
87-132
133-188
≥189
2"
≥ 326
189-290
291-405
≥ 406
3"
≥ 1276
501-860
861-1,300
≥ 1,301
4"
≥ 1276
1,001-1,800
1,801-3,000
≥ 3,001
6"
≥ 3401
5,601-8,800
8,801-12,000
≥ 12,001
8"
≥ 3401
5,601-10,000
10,001-14,000
≥ 14,001
10"
≥ 3401
24,001-32,000
32,001-37,000
≥ 37,001
12"
≥ 3401
24,001-32,000
32,001-37,000
≥ 37,001
*
Water usage is billed by hundred
cubic feet (HCF). 1 HCF = 748 gallons. One billing unit (BU) is
equivalent to one HCF (748 gallons), and both terms are used
interchangeably.
More
Information: Information regarding the
rate increases for all PWP customers to the Water Distribution and Customer
Charge and other charges listed above is available at the
Office of the City
Clerk. You may also call
PWP customer service at 626-744-4005.
PUBLIC MEETINGS:“Understanding the Proposed Water Rate Increases”
In an
effort to help its customers better understand the rationale for and
potential impact of the proposed water rate
increases, PWP hosted a series of public meetings
with residential and business customers throughout the month of
May.
