The District expects a long-term reduction in water use habits as our customers become more efficient. This expected reduction in water use is one of the reasons the District must raise rates in order to recover sufficient revenues to maintain high quality water service.
During times of drought, the District may be required to reduce demands even further. For instance, in response to the recent statewide drought and limited allocations of imported water supplies, the District required all customers to reduce overall water demand by 20 percent compared to 2021 usage levels. Such a decrease in demand reduces the amount of expected revenues generated by existing water rates, which may impact the District's ability to maintain high quality and reliable water service.
The District's demand reduction rates will maintain financial stability and high quality water service during future periods of planned reductions in demand in order to address projected revenue shortfalls that account for the cost-of-service under each demand reduction. Stages 1, 2, 3 and 4 represent potential future rate adjustments to address a 10%, 20%, 30% and 40% planned reduction in demands below baseline levels. Demand reduction rates cannot be automatically implemented - they require separate action by the Board of Directors before they take effect. Demand reduction rates do not apply to recycled water customers.