* 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.

** Summer rates for inside city water accounts are given. Outside city rates are 25% more. Winter rates are 3% less for both inside and outside city accounts.

 

 FIXED CHARGES:

*** The Distribution and Customer Charge (D&C) covers the ongoing cost of water distribution system maintenance, metering, customer service and billing. The Fire Protection Surcharge (FPS) covers maintenance of public fire hydrants.

 

VIEW CURRENT RATES

Keep your rates low: GET WATER-WISE!

 

Background on the 2009 Rate Increases
 

Overview: On June 22, 2009 City Council approved fixed-rate charge increases, commodity rates increases and a reallocation of the block rate structure to include two additional rate tiers, Blocks 4 and 5. While the approved fixed-rate charge increases are still scheduled to take effect over 2009-2011, the City Council has since eliminated Block 5 and reduced Block 4  by 25 percent, effective July 1, 2010. (Read more on rate adjustments 2010-11)

• Fixed-Rate Charges Increases:  While for many years PWP’s water service revenues remained relatively flat, regular operational and maintenance costs to our community-owned utility increased. PWP 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 is implementing three separate increases to the fixed rate charges on water service bills, the Distribution and Customer (D&C) charge and the Fire Protection Surcharge (FPS). The increases will occur on August 1 of 2009 and July 1 of 2010 and 2011.
   

• Block Rate Restructure and Increases:  On July 1, 2009 the Metropolitan Water District (MWD), from which PWP receives 65% of its supply, decreased its allocation to Pasadena by 10%. PWP will incur steep penalty rates from MWD if PWP's annual cumulative consumption exceeds MWD's allocation. In addition, on September 1, 2009 MWD raised its commodity rates 19.7 percent.

In response, PWP redesigned its tiered rate structure, adding two new high-use tiers, Blocks 4 and 5, and adjusting the water allocation thresholds for each rate block. (In a tiered rate structure, the more water you use, the higher the block and therefore the higher rate you pay.) This restructure was designed to reflect the true rising cost of water and send price signals to encourage water conservation. It was  not designed to penalize customers who are already conserving.

A block restructure is also a critical component of the Comprehensive Water Conservation Plan, which City Council approved on April 13, 2009.

NOTE: The City Council has since eliminated Block 5 and reduced Block 4  by 25 percent, effective July 1, 2010. (Read more on rate adjustments 2010-11)

• 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 2009 water rate increases, PWP hosted a series of public meetings with residential and business customers throughout May of 2009

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

BUSINESSES: What the Proposed Increases Mean For You

• More:

June 8 /June 22, 2009 Agenda Reports

Press Release, June 9, 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")
 

Block 4 and 5 Credit

• As of July 1, 2010, Block 5 has been eliminated, and Block 4 rates have been reduced by 25 percent.

• Customers who paid Block 4/5 rates between 7/1/09 and 6/30/10 will receive a credit on their bill in fall 2010 bill.

• As of July 1, 2010, the Block 4/5 Credit Program is discontinued, and customers who pay Block 4 rates on or after 7/1/10 will no longer be eligible for future credit for those charges.

More Information:

As of July 1, 2010, PWP has eliminated the highest rate tier, Block 5, and reduced Block 4 rates by 25 percent. 

These two rate blocks were put in place in 2009 to cover potential overuse penalties passed on to PWP from its wholesale water provider, the Metropolitan Water District (MWD). Since that time, PWP customers have cut their water use and steered clear of those overuse penalties. Anticipating that customers will continue on this conservation track, PWP can now reasonably afford to eliminate Block 5 and reduce Block 4 rates.

Since MWD penalties were not incurred during FY 09-10, PWP customers will now receive a credit on their fall 2010 bill for any amount paid over block 3 rates during the previous fiscal year. The dollar amount of the Block 4/5 credit will depend on how much the customer used and paid for at those rates.

Also, subsequent to the new rate ordinance effective July 1, 2010,  the Block 5 Relief Program and the Block 4&5 Credit Program have been discontinued. Customers who pay Block 4 rates on or after July 1, 2010 will no longer be eligible for future credit for those charges.

Please call Customer Service at 744-4005 if you have any questions.

Keep your bills low: GET WATER-WISE!

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