2018 Water Rate Adjustment

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In November 2017, the City Council approved a plan at a Public Hearing, in accordance with Proposition 218, to adjust water rates over the five-year period of 2018 through 2022 for customers served by the Torrance Municipal Water (TMW) system. The rate adjustments are needed to pay for vital system infrastructure replacements and refurbishments, meet new regulatory requirements, and cover higher operating costs. In addition, the rate adjustment will also fund the development of new local water resources to reduce the municipal system’s current dependence on expensive, imported water, enhance the reliability of the community’s water supply, and lower long term water costs.

The rate adjustment only applies to customers served by TMW. To continue meeting State water use reduction targets, the rate structure will retain a conservation–based tiered rate structure, which encourages conservation and allocates costs to those whose use of more water imposes higher costs on TMW. The new rate schedule charges customers in accordance with recognized cost of service requirements. The only change to the rate structure is the elimination of the tier 4 for the Single Family Residential Customer (SFR) rate classification.

There were no increases in water rates of any type in either 2016 or 2017. Even with this adjustment, TMW rates are expected to remain among the lowest in the area. The rate adjustments apply to all Standard Rate customers (non-contractual). The Senior/Disabled Low Income discount rate will be funded from non-rate revenues. Water rates consist of two components - a fixed Meter Service Charge (also known as Readiness-to-Serve (RTS) Charge) and a variable charge known as the Commodity Charge based on water usage in hundred cubic feet (CCF). In addition, there are adjustments in charges to customers who require dedicated Private Fire Protection service and customers in the high pressure zone who are charged a Pumping Service Charge. 

Rate Adjustment Notice Mailed in December 2017

STARTING WITH THE BILLING FOR

FEBRUARY 2018 FOR STANDARD RATE CUSTOMERS BILLED ON A MONTHLY BASIS
- OR -
MARCH 2018 FOR STANDARD RATE CUSTOMERS BILLED ON A BI-MONTHLY BASIS

 

  • An overall average system water rate adjustment of approximately 12.5%. The change in your water bill for 2018 will vary depending on your customer classification and water use.An increase in the fixed monthly Meter Service (Readiness-to-Serve, RTS) Charge. For customers with 3/4” meter, the increase will be $0.59 per month.
  • The RTS charge for other sized meters is based on size and capacity of the meter.

  • An increase in the Private Fire Protection (PFP) Charge based on the size and capacity of the dedicated PFP meter.

  • An increase in the Pumping Service Charge based on the size and capacity of the meter.

 

 Water Rates to become effective January 1, 2018
Usage measured in hundreds of cubic feet (CCFs or billing units) which equals approximately 748 gallons

I. Quantity Rates (Commodity) for Standard Rate Customers

Customer Class

Tier

Monthly Usage 
CCF

2018 Rate
$ per CCF

Single Family Residential (SFR)

1

First 7

$2.820

2

8-12

$4.770

3

13+

$5.770

4

Eliminated

Eliminated


   

 

All Other Customers (a)

1

0-10

$3.210

2

11+

$4.590

(a) Excludes Contractual Rates

Senior Low-Income or Disabled Low-Income (a)

1

First 7

$2.420

2

8-12

$4.370

3

13+

$5.370

4

Eliminated

Eliminated

 

 

II. Meter Service Charge
(Readiness to Serve)

 

III. Private Fire Protection Service (Fireline Service Charge)

 

IV. Pumping Service Charge
(Applies to Customers in High Pressure Zone)

Meter Size

Monthly Charge
2018

 

Meter Size

Monthly Charge
2018

 

Meter Size

Monthly Charge
2018

3/4”

$6.43

 

2”

$5.52

 

3/4”

$5.50

1”

$9.24

 

3”

$11.79

 

1”

$9.17

1 ½”

$16.25

 

4”

$22.61

 

1 ½”

$18.33

2”

$24.67

 

6”

$61.45

 

2”

$29.33

3”

$51.32

 

8”

$128.44

 

3”

$64.15

4”

$90.61

 

10”

$229.20

 

4”

$115.46

6”

$184.60

 

12”

$368.86

 

6”

$238.25

8”

$338.92

 

 

 

 

8”

$439.85

10”

$535.33

 

 

 

 

10”

$696.42

12”

$703.68

 

 

 

12”

$916.34

14”

$1,054.40

 

 

 

 

 

V. Fire Flow Service Charge - $161.60 per test