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chapter 14 - Drinking Water treatment and Distribution

2003

408

489

2004

418

499

2005

443

524

2006

453

549

2007

478

574

2008

508

606

2009

579

695

1994

412

1995-1996

426

1997-2002

431

Tier 1

2010

665

793

2011

691

809

2012

714

832

2013

730

784

Table 14-5 Metropolitan Water District of Southern California treated water rate history

a

Tier 2

b

Projected future w

ater rates

Note: Data obtained from Metropolitan Water District of Southern California (2009) Tier 1 supply rate – recovers the cost of maintaining a reliable amount of supply a

b Tier 2 supply rate – set at MWD cost of developing additional supply and to encourage efficient use of local resources

Year Historical and current water rates

Cost of treated water ($/AF)

This shows an increase of between 40 and 68 percent in the cost of providing treated water in an area serving a large rate base. There was a moderate increase in cost per acre foot (AF) from 1994 to 2002 and a more rapid increase in cost from 2003 to 2009, which reflects improvements to the treatment provided, increased cost for chemicals and energy, and reduced availability of new water supplies. The primary cost factors causing the 2009 MWD rate increase include increased conservation efforts, the quagga mussel control program, litigation and the higher cost for State Water Project deliveries during FY 2008/2009. MWD may not capture the true cost of service with these rates, and must cover some costs through the use of reserves. The increase in cost to provide drinking water for smaller systems may be significantly greater, and they will not have reserves to offset rate increases.

Per household costs for compliance with new regulations for small water systems can be over four-fold higher than those for medium to large water systems (Fed Regist., 2006).

Trends of increasing water rates and connection fees can be partially attributed to aging infrastructure and rising construction costs. In the Black & Veatch 2006 California Water Rate Survey, the survey results revealed that the average residential monthly charge for

caLifoRnia WateR PLan | update 2009

14-17

iMPRove WateR QuaLitY

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