Tiered Rates Questions & Answers
Q: Why is SJWC implementing tiered rates?
A: The CPUC has ordered that all large water utilities implement tiered rates as a way to encourage water conservation.
Q: How do tiered rates work?
A: Tiered or block rates are designed to encourage residential customers to use water more efficiently. The new rate structure will have two tiers, with a lower per unit price for water usage below 13 ccf per month, and a higher per unit price for water usage in excess of 13 ccf per month as shown below:
| Type of Meter | Ussage |
Rate as of January 1, 2009 Per ccf (748 gallons)* |
|---|---|---|
|
Standard Residential Meters Meters Smaller Than 1.5-inch |
Usage from 0 to 13 ccf | $2.2082 |
| Usage greater than 13 ccf | $2.4282 | |
|
Large Residential Meters Meters Sizes 1.5 & 2 inch |
Usage from 0 to 26 ccf | $2.2082 |
| Usage greater than 26 ccf | $2.4282 |
Q: How will the rates affect me?
A: As designed, these rates will encourage customers to use water more efficiently. Low usage customers and those who reduce their current water usage will see an overall annual reduction in their bills, since the price for the first 13 units has been reduced. High usage customers and those who increase their usage may see an increase in their bills. The following table shows how the new rates will affect most residential customers.
Sample Bill Calculation (Residential 3/4-inch meter, 21 ccf per monnth
| Rate | Old Bill | Rate | New Bill | ||
|---|---|---|---|---|---|
| Total Water Charges | $60.92 | Total Water Charges | $63.21 | ||
| Service Charge | $14.13 | $14.13 | Service Charge | $15.07 | $15.07 |
|
Quantity Rate per ccf (21 units) |
$2.2279 | $46.79 |
Quantity Rate Tier I per ccf (13 units) |
$2.2082 | $28.71 |
| Tier II (8 units) | $2.4282 | $19.43 | |||
Sample Bill Comparisons:
| Standard Residential Meter (3/4-inch) | Old Bill | New Bill | Difference |
|---|---|---|---|
| Average Annual Usage (16 ccf per month) | $49.78 | $51.06 | 2.57% |
| Average Summer Usage (21 ccf per month) | $60.92 | $63.21 | 3.76% |
| Average Winter Usage (10 ccf per month) | $36.41 | $37.15 | 2.03% |
Q: How were the tiers established?
A: The first tier represents a baseline water usage considered necessary for basic indoor water consumption. The second tier represents water usage in excess of baseline usage for landscape irrigation and other outdoor usage.
Q: Why do tiered rates only apply to residential customers?
A: The CPUC has made it a priority to establish tiered rates for residential customers to maximize conservation. Tiered rates will be considered by the CPUC for other customer groups in the near future.
Q: I have a big family and many pets. Why can’t the rates be based on the number in each household?
A: SJWC does not collect or maintain information on the number of individuals served by each of the about 220,000 service connections (households) in the company’s service area. You may want to contact SJWC to learn about using water efficiently, how to better conserve water, and what changes you can make at home to save water. Here are some tips for how to reduce your indoor water use:
- Repair all leaking plumbing fixtures. Even a minor drip can waste several gallons of water per day.
- Check the internal parts of toilets for wear and corrosion; replace if necessary. Also, make sure the flappers have proper seating; flappers that do not seat properly waste water.
- Run full dishwasher and laundry loads. When considering new appliances, look for energy and water-efficient models.
- Install low flow showerheads that use 2.5 gallons per minute, and faucet aerators that use only two gallons per minute.
- Take showers instead of baths since full baths can take up twice the amount of water used by showering.
Q: I live on a large lot. Why can’t the rates be based on lot size?
A: SJWC does not maintain information on customers’ lot sizes. If you have a larger lot than others in your community, your water demands will typically be higher than the average, depending on the extent, type, and variety of landscaping. Here are some tips for how to reduce your outdoor water use:
- While washing your car, make sure there is an automatic shut off valve attached to the hose to prevent water waste.
- When planting, group plants together according to their water and sun needs. Use mulch to minimize evaporation and to reduce weed growth.
- Water during the early morning or evening hours to minimize water evaporation.
- Water lawns no more than three times a week for about ten minutes on each station.
- Check your irrigation system regularly for broken sprinkler heads, malfunctions and distribution uniformity.
- Use sprinkler systems according to season. Adjust for minimal use and in the winter turn off the system.
Q: Do tiered rates apply to condominiums and multi-residential dwelling units?
A: Only if the units are individually metered by SJWC.
Q: Will the Utility Users Tax change?
A: No, it will still be based on the total water bill.
Q: Will tiered rates affect customers participating in the Water Rate Assistance Program (WRAP)?
A: The total bill may change but the WRAP discount will still be based on the total bill. However, the discount amount will change accordingly since bills tend to be higher in the summer and lower in the winter. You can obtain additional information regarding the WRAP discount from our website or by calling 408-279-7900. Information and applications may also be obtained at our customer service facility at 110 W. Taylor Street, San Jose, 95110.
Q: Where can I raise my concern about tiered rates?
A: If you have any questions, comments or complaints about SJWC’s new rate structure you should contact SJWC at 408-279-7900. If you have a complaint about your bill, and SJWC cannot resolve it for you, you may file a complaint with the CPUC’s Consumer Affairs Branch: CPUC-Consumer Affairs Branch, 505 Van Ness Ave., San Francisco, CA 94102. Tel: 1-800-647-7570 or 415-703-1170. Fax: 415-703-1158.
Q: Where can I get more information on how to conserve water?
A: Visit the Conservation section of our website to find more information about water audits and other water-saving programs or you can contact us at 408-279-7900.