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
August 1, 2009.
Background: 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 to minimize the financial impact on customers.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 August 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 has restructured 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.) 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.
PWP, a non-profit
utility, aims to keep its customers' bills as low as possible.
Recognizing that the new Block 4 and 5 rates (effective Aug. 1, 2009)
will result in a significant increase in some customers' bills, PWP is
taking steps to minimize the financial impact on its customers.
Block 4 &
5 Credit: In the event that citywide water consumption does not
exceed the allocation set by the Metropolitan Water District, customers who
have used and been charged for water in blocks 4 and 5 will receive credit
for such charges. Further details will be posted at a later date.
Block 5
Rate Relief Program: 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. Please use the
Water Bill Estimator
to see if you are likely to be charged at the Block 5 rate.
Apply for Block 5 Rate
Relief.
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 August 2009,
July 2010 and July 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 August 1, 2009 to 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 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 increaseeffective
August 1, 2009 and
two other D&C increases
that will occur in
July 2010 and 2011.
Combined D&C and
FPS Increases Across Three Years
Meter Size
Current Monthly D&C
with FPS
Aug. 1, 2009
July 1, 2010
July 1, 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
new block widthsand billing units (given in HCF)
allocated per block.
REALLOCATION OF BLOCK RATE
STRUCTURE
Effective August 1, 2009
MeterSize
Block 1
Block 2
Block 3
New Block 4
New Block 5
5/8"
0-8 HCF*
9-24 HCF*
25-34 HCF*
35-46 HCF*
≥ 47
HCF*
3/4"
0-8
9-24
25-34
35-46
≥ 47
1"
0-12
13-40
41-60
61-90
≥ 91
1 1/2"
0-22
23-86
87-132
133-188
≥189
2"
0-48
49-188
189-290
291-405
≥ 406
3"
0-116
117-500
501-860
861-1,300
≥ 1,301
4"
0-225
226-1,000
1,001-1,800
1,801-3,000
≥ 3,001
6"
0-500
501-5,600
5,601-8,800
8,801-12,000
≥ 12,001
8"
0-500
501-5,600
5,601-10,000
10,001-14,000
≥ 14,001
10"
0-500
501-24,000
24,001-32,000
32,001-37,000
≥ 37,001
12"
0-500
501-24,000
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.
