The following content was taken from the LA Department of Water and Power website. To visit their site click here…
MANDATORY WATER RESTRICTIONS AND RATE HIKES ARE HERE!
Shortage Year Water Rates and Outdoor Watering Restrictions Begin June 1. Southern California is facing a water supply shortage for the third year in a row. As a result, more water conservation is urgently needed.
SHORTAGE YEAR WATER RATES EXPLAINED
Beginning June 1, shortage year rates will become effective and will be applied to all LADWP customers.
IMPACT OF SHORTAGE YEAR RATES
As an example, effective June 1, 2009, a typical two-month billing cycle for a single-family residential customer who is allocated 28 hundred cubic feet (HCF) of water pays $81.76, or 2.92 cents per cubic foot. After a 15% reduction, that customer’s allocation allows them to purchase 24 HCF of Tier 1 water, which amounts to $70.08. If the customer does not cut back, he/she will pay for 24 HCF at the Tier 1 rate, or $70.08, plus 4 HCF at the Tier 2 rate, or $5.19 per HCF, which amounts to an additional $20.76 for a total of $90.84. Notes: the Tier 2 rate will be $5.48 per HCF effective July 1, 2009. One HCF equals 748 gallons.
IMPACT OF SHORTAGE YEAR RATES ON LOW INCOME CUSTOMERS
There is no exemption for low income customers under shortage year rates, but LADWP’s assessment is that most low income and Lifeline customers will not be impacted. On average, this group of customers does not exceed Tier 1 water allocations and typically uses far less than the maximum Tier 1 water budget. However, all customers should review their use to determine their own water use against the new lower Tier 1 allotment and to learn steps to take if they believe they could exceed their Tier 1 allotment.
HOW TIER 1 WATER BUDGET IS SET: SINGLE FAMILY RESIDENTIAL CUSTOMERS
HOW TIER 1 ALLOTMENT IS SET: MULTI-FAMILY, COMMERCIAL & INDUSTRIAL CUSTOMERS
The Tier 1 water budget for multi-family, commercial and industrial customers is based on a percentage of the customer’s maximum daily average during winter (December through March) over the past three years, reduced by 15%. The allocation is applied year-round. For multi-family units, the formula is calculated for each individual meter. Commercial and industrial customers’ water budgets work out to be 97.75% of three-year winter high averages.