Rate Increase FAQ
PART 2: NEW TIERED RATE STRUCTURE
The second key question addressed by the rate study was how to structure the revised rates so as to minimize the negative impact of higher water rates on those who can least afford to pay more. The rate structure also must conform to Proposition 218, which requires that rates reflect the actual cost associated with producing and delivering water to individual ratepayers. The new rate structure seeks to achieve this by implementing different rates for different classes of customers, and, within the class of single-family residential customers, a tiered rate structure. This second section of our FAQ provides a detailed examination of this tiered-rate system and its intended benefits.
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