Feb. 13, 2014
-- The Irvine Ranch Water District allocation-based conservation rate structure adopted in 1991 was designed to achieve the dual objectives of promoting water conservation while maintaining revenue stability. It is a foundational tool in IRWD’s successful water efficiency program and has resulted in significant water use reductions. Since 1991 the average daily water use for an IRWD residential customer has fallen from 170 gallons per day to approximately 86 gallons per day in 2014 and customers continue to be rewarded with the one of the lowest rates in Orange County.
At IRWD, the cost of water supplied to customers is based on the actual quantity of water used and the cost to IRWD to purchase these water supplies. Customers who use less water are rewarded with lower rates because IRWD can utilize low cost local sources of water. Customers who use more water have higher bills because of the need for IRWD to purchase more expensive imported water. Each customer pays their fair share, no more or no less.
IRWD assesses a monthly fixed charge based upon meter size. This fixed charge provides adequate funding for all fixed operating costs other than the water commodity itself and the District’s water use efficiency and related programs. Debt service payments are paid from sources related to capital development. As such, IRWD enjoys revenue stability and our ability to make debt service payments is not impacted regardless of the amount of water sold or the degree of conservation experienced from customers’ water use efficiency practices.
Lastly, imported water is IRWD’s most expensive source of supply. IRWD has made significant investments in water conservation, recycled water, and other water supply reliability projects, which have reduced imported water from 62% to a low of 23% percent in 2014. This reduction in the District’s dependence on imported water helps keep water rates low.
For more information on IRWD’s successful water conservation program, please visit http://www.irwd.com