Glendora, City of

California

The City of Glendora (City) completed its full cost of service study in-house and adopted a five-year water rates schedule for fiscal years 2012 to 2016.  At the time, the water rates consisted of readiness-to-serve charges by meter size and 2-tier quantity rates applicable to all of its customer classes. The first tier, called “baseline”, was for all usage within the baseline allocation which varies by meter size. The quantity rates consisted of an energy component rate, “baseline allocation” and “purchased water” component rates, and a discretionary-use rate.

The City commissioned RFC to develop a conservation rate structure to meet its goals and pricing objectives.  In the beginning of the Study, RFC conducted a series of workshops with the City Water Commission to discuss possibilities for conservation water rate structures and to understand the City’s pricing objectives in order to develop a conservation rate structure framework to be evaluated for the Study.  As part of the first phase, RFC also contacted Pentamation, the service provider for the City’s current financial system and water billing system, to evaluate its restrictions and capability to accommodate different conservation rate structures, including water budget rates. The implementation costs for each alternative rate structure were also presented to the Water Commission. In the second phase of the Study, RFC developed a Water Rate Model that allowed the City to evaluate various policy options such as landscape area and weather data options associated with the proposed conservation rate structures established in the first phase of the Study. The water conservation rate structure was designed to promote water efficiency, enhance revenue stability, and ensure conservation program funding for the City. RFC presented two alternative rate structures – simplified seasonal water budget and full water budget – to the City’s Water Commission along with the associated customer impacts, in easy-to understand, graphical format.