Water Rate Increases 2009-2011   
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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.  

Read the June 22 Agenda Report

Keep your rates low: GET WATER SMART!


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SUMMARY
 

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 water and send price signals to encourage water conservation. It is not designed to penalize customers who are already conserving.

Restructuring the blocks is also a critical component of the Comprehensive Water Conservation Plan, which City Council approved on April 13.

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.

Press Release, June , 2009: Rising Costs Spur Water Rate Increases

KPAS Interview with Shari Thomas, PWP Asst. GM of Finance and Administration  (Click on "Water, Rates and Budget")

Public Meetings
 


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APPROVED RATE CHANGES, June 22, 2009

  • Under Water Rate Ordinance Section 13.20.030, three separate increases to the Distribution 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 reallocate the 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
 

Meter Size

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…)

Meter Size

Current Block 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.

Use the Water Bill Estimator to see how the rate changes may impact your bill.

 

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.


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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.

Slide Presentations from Public Meetings:
RESIDENTS: What the Proposed Increases Mean for You

BUSINESSES: What the Proposed Increases Mean For You

 


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