Information about the Water Rate Adjustment Factor |
The Board of Water and Power Commissioners approved a Water Revenue Adjustment Factor (WRAF) at their meeting yesterday, which ensures a minimum level of revenue from base rates to keep the Water System running. As Angelenos use less water, there is less water revenue generated. This year, conservation has reduced projected revenues by $110.7 million. The WRAF will allow the Department to recover costs associated with delivering water to customers, approximately $57.6 million, and still provide savings to ratepayers of $53 million as a result of their reduced consumption.
LADWP customers are already saving on their monthly bills due to conservation, and the typical LADWP customer will continue to save on their bi-monthly bill after this adjustment. When comparing 2013/14 bills with 2014/15 bills the average savings from this conservation is about $3.26 per customer per month. If we did not pass the WRAF then the difference in the bills from 13/14 to 14/15 would have been $5.06 in savings per customer per month. The WRAF will still save our customers money while ensuring that there is sufficient revenue to run LADWP’s water system. |