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New water rates approved; Council OKs structure intended to encourage conservation and to leave those who use the most with even higher bills

Posted by: Maven on May 6, 2009 at 6:32 am

From the Burbank Leader:

In the wake of a Metropolitan Water District of Southern California Board of Directors vote to cut water shipments by 10%, hike rates nearly 20% and impose increased penalties on member agencies that exceed designated allotments, the Burbank City Council this week approved a water-rate structure that the city utility said represents the true cost of water to residents.

The City Council on Tuesday voted 4 to 1 to incorporate the rate structure into its proposed water rates for 2009-10, an item expected to go before the council June 2.

Burbank Water and Power executives developed a rate structure intended to encourage conservation and send a message to residents about overuse and waste, just as the state Legislature prepares to take action on a bill that would mandate a 20% reduction of water use by 2020.

Rates for single-family residents would disproportionally climb during the five-year period, leaving the highest users with the most expensive bills. Early estimates reveal a 15% increase for single-family residents, or a rise of roughly $7.50 per monthly bill.

“I don’t think that there’s any way to make 15% back-to-back rate increases easy on people,” said Jim Lazar, consulting economist to the utility that helped design its electricity-rate structure. “So either everyone is going to get hit hard or some people are going to get hit a little harder.”

Read more from the Burbank Leader by clicking here.

May 6, 2009 · Filed Under Conservation, Southern California

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