New Five-Tiered Water Rate Structure Scheduled for Palmdale, CA

Nov.26, 2008 in Public Works, Water Bills, Water Conservation, Water Industry, Water Rates

(Nov. 25, 2008, The Antelope Valley Press)

A new rate structure could influence Palmdale Water District customers to cut back on their water use: At least that’s what agency board members hope.

Water district board members listened last week to a presentation from Sudhir Pardiwala, vice president of Raftelis Financial Consultants Inc., the Pasadena-based consulting firm contracted to assist the water district in developing a new rate structure that would limit the amount of water each customer can use before being charged a higher fee for excessive use.

With the new rate structure, some water bills conceivably can decrease, but there’s also a chance some customers will pay more, officials say. Prices have not been decided yet.

“The idea is to promote conservation,” Pardiwala said. “Budget rates do that efficiently.”

In order to develop accurate and efficient water budget rates, Pardiwala said the board first must “look at existing rates (and) identify some of the weaknesses.

“Your existing rates consist of a fixed charge and variable charge.” Pardiwala said he saw “some inconsistency in the way (certain) charges are set up.”

A table of existing variable rates shows five tiers for monthly water use that compares the base rate with incremental increases for customers who exceed the minimum allotted.