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Water-Budget-Based Rates Explained
Answers to your questions about the proposed new rate structure

LAGUNA NIGUEL, Calif. (April 7, 2011) -The Moulton Niguel Water District Board of Directors is considering a change from our current rate model to a water-budget-based rate structure. We’ve included answers below to the two most frequent questions we’ve received from customers. Answers to the full list of questions that have been raised can be found at www.MNWD.com. The site also includes a detailed presentation on the proposed rate structure, so we invite you to log on and learn more.

Why is MNWD proposing a change to water-budget-based rates?

The District believes that efficient water users shouldn’t have to subsidize customers who use water inefficiently. Under the current billing system, the cost to deliver and treat unnecessary (wasted) water is spread to all customers in the form of higher rates. Under the proposed rate structure, only customers who waste water would pay these costs. Also, South Orange County is a semi-arid region with virtually no local water supplies and our state faces a serious, long-term water shortage. The proposed rate structure is designed to provide customers with a personalized water budget to help them better understand what an efficient level of water use is given their specific situations, so that all of our customers can take part in helping to meet this water-supply challenge.

Why would my bill increase even if I stay within my water budget?

The increase would be almost 100 percent a result of the series of three 16.2 percent water and sewer rate increases the MNWD Board of Directors approved in May 2009, not the proposed new water-budget-based rates. The last of those increases will occur on June 1, 2011. The water-budget-based rates proposal that is currently under consideration would only raise rates an additional three cents per 748 gallons for customers who use water efficiently. This new, small increase is necessary to more evenly share the true cost of purchasing water between our residential, commercial and irrigation customers. The only customers who may see a significant increase in their water bills due to the proposed waterbudget- based rate structure are those who exceed their water budgets, and the District would work closely with them to help reduce their water use and lower their water costs.

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