IPU – Rates and Charges
As part of an ongoing commitment to responsible planning, the IPU completed a study of its rates and fees to ensure they are adequate to support the cost of providing service. This independent cost-of-service study determined that rate adjustments are necessary to generate additional revenue needed to offset increases in the cost of producing groundwater and the costs for operations, maintenance and improvements to the IPU’s water system. On August 23, 2021, a notice of proposed adjustment to water rates and charges were mailed to all property owners within the IPU’s service area. The notice provided information on the Public Hearing on the proposed water rate adjustments. A Public Hearing was held on October 14, 2021 regarding the proposed increase to Water Rates and Charges. The proposed increase to Water Rates and Charges for 2021 through 2025 were approved by Resolution of the Industry Public Utilities Commission (Resolution No. IPUC 2021-07).
The main cost factors that necessitate an adjustment in water rates are provided below:
COST OF WATER
The CIWS is fortunate to have rights to a local groundwater source in the Main San Gabriel Basin (“Basin”), but any water the CIWS pumps over its allotment provided under the Basin’s Judgment must be replaced to maintain water levels in the Basin by leasing rights or purchasing imported water. The cost for this replacement water has increased by over twenty-three percent (23%) in the last four years.
A new groundwater pumping assessment has been put into effect by the Main San Gabriel Basin Watermaster, established under the Basin’s Judgment to manage the Basin and its groundwater supplies, in order to secure additional water resources to maintain water levels in the Basin. This assessment has had a large cost impact on the CIWS and all other water providers that pump groundwater from the Basin in the San Gabriel Valley.
The CIWS continuously invests in capital improvement projects that improve the performance of the water system or extend the life of existing facilities and equipment to avoid more expensive emergency repairs. In 2017, the IPU updated its Ten-Year CIWS Water Master Plan which identified necessary improvements and prioritized projects based on their need and benefit. A copy of that plan is available from the IPU upon request.