How do the “tiered” water rates work?

How do the “tiered” water rates work?

May 24, 2024

For single-family residential customers only, we are proposing to change that so the cost per 1,000 gallons will be in three ‘tiers.’  Tiered water rates reward customers who use less water by charging the least amount per 1,000 gallons for use in the first tier, and increasingly more as customers use more water and move into higher tiers. Tiered rates are the most common way to charge for water in California.

The lowest tier corresponds to an amount of water sufficient to meet typical indoor household needs—cooking, drinking, and sanitation at the lowest possible rate. Each subsequent tier charges a higher rate and is designed to send a price signal to households when using water for outdoor irrigation. It’s important to note that as a customer uses more water, their use “moves through the tiers,” meaning that even if their water use moves into the second or third tier, they still receive that first tier of water at the lowest rate.