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LADWP Newsroom

FOR IMMEDIATE RELEASE

DATE: April 17, 2009 4:10:19 PM PDT

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LOS ANGELES CITY COUNCIL APPROVES SHORTAGE YEAR WATER RATES EFFECTIVE JUNE 1

LADWP Seeks 15% Reduction in Water Use Across All Customer Sectors

LOS ANGELES -- The Los Angeles City Council today approved instituting shortage year rates for all Los Angeles Department of Water and Power (LADWP) water customers effective June 1, 2009, citing reduced water supplies due to drought and regulatory restrictions imposed on the Sacramento/San Joaquin Delta.  Shortage year rates are designed to send a strong price signal to customers using excessive amounts of water to conserve water or pay a much higher price for water use beyond their set allotment. 

"We are grateful to the City Council for their action on this urgent matter," said David Nahai, LADWP CEO and General Manager.  "Significant water conservation is imperative immediately as we are experiencing both a natural drought and a regulatory drought due to restrictions placed on the importation of water from the Delta."

Shortage year rates seek to achieve 15% water savings citywide and in all customer sectors -- single-family, multi-family, commercial, industrial and governmental.  Under shortage year rates, the current Tier 1 water allotment, which is the standard allotment every customer gets per billing cycle, will be reduced by 15%.  A customer’s allotment is based on number of family members, heat zone, lot size and season.  Customers already conserving 15% below their Tier 1 allotment will not be affected and those who reduce by more than 15% will actually see their bills go down.  Conversely, customers who usually stay within their regular allotment and do not reduce their water use by 15% will pay a premium rate for each gallon they use beyond their new reduced water allotment.  Customers who today exceed their regular allotment and pay Tier 2 rates routinely, and do not significantly cut their water use under shortage year rates, will see their water bills increase substantially.

An example of an LADWP residential customer under shortage year rates in June 2009:

 

Before Shortage Year Rates

After 15% Shortage Year Rates Allocation

Without 15% Conservation

With 15% Conservation

Customer Use

28 HCF

28 HCF

24 HCF

Applicable Rate

28 HCF @ Tier 1

First 24 HCF @ Tier 1

24 HCF @ Tier 1

4 HCF @ Tier 2

Total Bill

$83.52

$92.35

$71.59

HCF= hundred cubic feet

More information about LADWP's water rates can be found on the Department website at www.ladwp.com/waterrates.  For information on water conservation and prohibited water uses, water conservation tips and more, please visit www.ladwp.com and click on "Water Conservation."

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For more information contact:
Jane Galbraith
LADWP Public Affairs
(213) 367-1361