Chapter 7.10
WATER RATES AND CHARGES FOR WATER USER AGENCIES
Sections:
7.10.010 Water surcharge – Administrative charge.
7.10.020 Water surcharge – Mills Gravity Line.
7.10.030 Charges for water deliveries.
7.10.040 Maximum quantity of water deliveries.
7.10.050 Metropolitan Water District capacity charge.
7.10.060 Western’s capacity charge rate.
7.10.070 Readiness-to-serve charge.
7.10.075 Mills Gravity Line major maintenance reserve.
7.10.010 Water surcharge – Administrative charge.
Effective July 1, 2020, a charge of $23.36 per acre-foot is hereby added to the cost of water charged by MWD to all of the retail agencies to whom water is made available by Western. Such charge will be used by Western in the administration of the supply and delivery of water to retail agencies. (Res. 3116, 2020; Res. 2957, 2016; Res. 2914, 2015)
7.10.020 Water surcharge – Mills Gravity Line.
Effective July 1, 2020, a charge of $15.79 per acre-foot is hereby added to the cost of treated water delivered from the Mills Gravity Line to all retail agencies to whom water is made available by Western. Such charge will be used by Western to recover the cost of day-to-day maintenance of the Mills Gravity Line. (Res. 3116, 2020; Res. 2957, 2016; Res. 2914, 2015)
7.10.030 Charges for water deliveries.
All water delivered from MWD to retail agencies of Western shall be in accordance with the administrative code and the rules, regulations and policies of MWD and Western. The charges for such water deliveries shall be as follows:
A. For all MWD water that is not delivered through the Mills Gravity Line.
|
|
Tier 1 |
Tier 2 |
|---|---|---|
|
Untreated Water Deliveries |
$777.00 |
$819.00 |
|
Western Administrative Charge |
$23.36 |
$23.36 |
|
Total for Untreated Water Deliveries |
$800.36 |
$842.36 |
|
|
|
|
|
Treated Water Deliveries |
$1,104.00 |
$1,146.00 |
|
Western Administrative Charge |
$23.36 |
$23.36 |
|
Total for Treated Water Deliveries |
$1,127.36 |
$1,169.36 |
B. For all MWD water that is delivered through the Mills Gravity Line.
|
|
Tier 1 |
Tier 2 |
|---|---|---|
|
Untreated Water Deliveries |
$777.00 |
$819.00 |
|
Western Administrative Charge |
$23.36 |
$23.36 |
|
Mills Gravity Line Maint. Charge |
$15.79 |
$15.79 |
|
Total for Untreated Water Deliveries |
$816.15 |
$858.15 |
|
|
|
|
|
Treated Water Deliveries |
$1,104.00 |
$1,146.00 |
|
Western Administrative Charge |
$23.36 |
$23.36 |
|
Mills Gravity Line Maint. Charge |
$15.79 |
$15.79 |
|
Total for Treated Water Deliveries |
$1,143.15 |
$1,185.15 |
(Res. 3116, 2020; Res. 2957, 2016; Res. 2914, 2015)
7.10.040 Maximum quantity of water deliveries.
The maximum quantity of MWD full service water to be delivered at Tier 1 rates (“Tier 1 annual maximum”) to each retail agency for calendar year 2021 is:
|
Retail Agency |
CY 2020 AF |
|---|---|
|
City of Corona |
21,110.0 |
|
City of Norco |
1,223.0 |
|
Metropolitan Water District |
3.5 |
|
Elsinore Valley MWD |
21,037.1 |
|
Temescal Valley Water District |
3,458.5 |
|
City of Riverside |
1,912.9 |
|
Rancho California Water District |
27,312.1 |
|
Eagle Valley Mutual Water Co. |
948.2 |
|
Western Retail |
28,777.7 |
|
Total Acre-Feet |
105,783.0 |
The allocation of the Tier 1 annual maximum above is set at 90 percent of each retail agency’s total MWD deliveries during fiscal year 2006-2007, utilizing the same method used by MWD to set Western’s Tier 1 annual maximum.
All quantities of MWD full service water delivered to a retail agency in excess of their Tier 1 annual maximum listed above will be charged at the Tier 2 rate. The exception to this is (A) MWD has not assessed Western any Tier 2 charges for the year, or (B) there are agencies listed above that do not use their full Tier 1 annual maximum during the calendar year (unused Tier 1). In this latter case, the unused Tier 1 will be allocated to each agency that exceeded their Tier 1 annual maximum during the calendar year based on the proportion of their excess to the total of all agencies’ excess (unused Tier 1 allocation). After the allocation of unused Tier 1, if available, any full service water delivered to a retail agency in excess of their Tier 1 annual maximum plus their unused Tier 1 allocation will be charged at the Tier 2 rate. This is the method used in prior years. (Res. 3116, 2020; Res. 2957, 2016; Res. 2914, 2015)
7.10.050 Metropolitan Water District capacity charge.
Each retail agency will pay the MWD capacity charge based on the capacity used on Western’s maximum summer day demand placed on the MWD system between May 1st and September 30th for the three-calendar-year period ending December 31, 2019, which was September 12, 2018. The peak demands used for calendar year 2021’s calculations are:
|
Elsinore Valley Municipal Water District |
70.8 cfs |
|
City of Corona |
40.6 cfs |
|
Rancho California Water District |
42.9 cfs |
|
City of Norco |
0.0 cfs |
|
Temescal Valley Water District |
5.0 cfs |
|
City of Riverside |
0.0 cfs |
|
Eagle Valley Mutual Water Company |
0.0 cfs |
|
Metropolitan Water District |
0.0 cfs |
|
Western Retail |
35.4 cfs |
|
Total |
194.7 cfs |
(Res. 3116, 2020; Res. 2957, 2016; Res. 2914, 2015)
7.10.060 Western’s capacity charge rate.
Effective January 1, 2021, Western’s capacity charge rate shall be the MWD rate of $10,700 per cfs. Each retail agency will be billed each calendar month an amount equal to the capacity used on the peak demand day multiplied by the Western capacity charge rate and divided by 12 as follows:
|
|
Monthly Amount |
|---|---|
|
Elsinore Valley Municipal Water District |
$63,130.00 |
|
City of Corona |
$36,201.67 |
|
Rancho California Water District |
$38,252.50 |
|
City of Norco |
$0.00 |
|
Temescal Valley Water District |
$4,458.33 |
|
City of Riverside |
$0.00 |
|
Eagle Valley Mutual Water Company |
$0.00 |
|
Metropolitan Water District |
$0.00 |
|
Western Retail |
$31,565.00 |
|
Total |
$173,607.50 |
(Res. 3116, 2020; Res. 2957, 2016; Res. 2914, 2015)
7.10.070 Readiness-to-serve charge.
Effective July 1, 2020, each agency will be billed each calendar month an amount equal to their share of the MWD net readiness-to-serve charge (RTS charge). The monthly amounts for July through December 2020 and January through June 2021 are as follows:
|
|
Monthly Amount July – Dec. 2020 |
Monthly Amount Jan. – June 2021 |
|---|---|---|
|
City of Corona |
$52,954.67 |
$52,093.17 |
|
City of Norco |
$0.00 |
$0.00 |
|
Metropolitan WD |
$18.83 |
$19.50 |
|
Elsinore Valley MWD |
$46,022.83 |
$46,031.83 |
|
Temescal Valley WD |
$10,018.83 |
$9,758.00 |
|
City of Riverside |
$0.00 |
$0.00 |
|
Rancho California WD |
$56,588.67 |
$59,519.67 |
|
Eagle Valley MWC |
$0.00 |
$0.00 |
|
Western Retail |
$59,407.33 |
$52,678.17 |
|
Total |
$225,011.16 |
$220,100.34 |
The RTS charge assessed to Western by MWD is allocated to each retail agency and to Western’s retail customers based on the same method MWD uses to assess it, the 10-year rolling average of firm deliveries (for calendar year 2021’s allocation, the 10 fiscal years are 2009-2010 through 2018-2019). The standby charge placed on the county tax rolls by MWD applicable to the parcels within the boundaries of each agency’s service area (less an MWD administrative charge and estimated delinquencies) is used as an offset to each agency’s share of the RTS charge, resulting in an adjusted RTS charge/credit.
For some agencies, netting their RTS charge with their standby charge revenue results in a credit instead of a charge. The sum of credits from these agencies is then allocated to the remaining agencies that have a charge. The allocation of the credits is based on the proportion of each agency’s adjusted RTS charge to the total adjusted RTS charge. The result is a net RTS charge. (Res. 3116, 2020; Res. 2957, 2016; Res. 2914, 2015)
7.10.075 Mills Gravity Line major maintenance reserve.
Effective July 1, 2020, each agency will be billed annually to fund a Mills Gravity Line major maintenance and repair reserve (maintenance reserve). The total amount to be funded will be allocated to each agency based on their proportion of service rights owned in the Mills Gravity Line as follows:
|
|
Total Service Rights |
Percent Ownership |
10 Years Maintenance Reserve |
Maintenance Reserve Annual Funding |
|---|---|---|---|---|
|
City of Corona |
61.50 |
10.89% |
$1,344,900 |
$134,490 |
|
Temescal Valley Water District |
87.96 |
15.57% |
$1,923,535 |
$192,353 |
|
City of Riverside |
30.00 |
5.31% |
$656,049 |
$65,605 |
|
Metropolitan Water District |
17.50 |
3.10% |
$382,695 |
$38,270 |
|
Western Retail |
367.94 |
65.13% |
$8,046,219 |
$804,622 |
|
Total |
564.90 |
100.00% |
$12,353,397 |
$1,235,340 |
The maintenance reserve was established to fund inspections of the Mills Gravity Line and to fund major maintenance and repair work necessary to keep the pipeline in good working condition. The maintenance reserve budget amount was established by HDR, a third-party engineering consultant, who completed a condition assessment of the Mills Gravity Line. Western plans to annually fund the maintenance reserve based on the next 10 years of HDR’s budget, totaling $12,353,397. (Res. 3116, 2020)
7.10.080 Interest charges.
Invoices for rates and charges shall be issued by the fifteenth of the month following the month for which service was provided, and invoices which are not paid before the next billing cycle (30 days) shall be subject to interest charges. Interest will be calculated at a rate of one percent per month on all amounts that remain unpaid at each billing cycle. The minimum amount of an invoice will be $25.00 per water connection, with the minimum amount charged even if there are no water deliveries. (Res. 3116, 2020; Res. 2957, 2016; Res. 2914, 2015)