HomeMy WebLinkAbout1995-01-24; Municipal Water District; 265; Implementation of MWD Revised Rate StructureCARLSBAD M;dICIPAL WATER DISTRICT - ,GENDA BILL
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MTG. 1/24/95 Update on Implementation of
DEPT. CMWD MWD Revised Rate Structure
RECOMMENDED ACTION:
No action required; this is an informational item only.
ITEM EXPLANATION:
The Metropolitan Water District’s (MWD) water rate structure for Fiscal Year 1995-96
reflects four new components consisting of 1) a readiness-to-serve charge (RTS), 2) a
new demand charge (NDC), 3) a connection maintenance charge, and 4) a treated
water peaking charge. The effect of these charges on Carlsbad is dependent on how
the San Diego County Water Authority chooses to pass through these charges to its
member agencies including Carlsbad.
Readiness-to-Serve Charge (RTS)
This charge will be set by MWD to recover the principal and interest payments on non-
tax supported debt that has been or will be issued to fund MWD’s capital improvements
constructed to meet the reliability and quality needs of existing users. The charge is
allocated to member agencies on the basis of a rolling average of historic water
purchases from MWD.
New Demand Charge (NDC)
This charge recovers the capital costs associated with meeting new demands on
MWD’s system. To incur the charge, an agency’s most current four-year average of
MWD purchases must be greater than its historic base period demands.
Connection Maintenance Charge
This charge will recover a portion of the costs for operating and maintaining service
connections to the MWD system. MWD has based the charge on the capacity and
number of connections each agency has with MWD.
Treated Water Peaking Charge
This charge will be set by MWD to encourage agencies that peak off MWD’s treatment
facilities during the summer to change their behavior or more equitably share in the
cost of facilities to meet their needs. If peak week flow during May through September
exceeds 130 percent of average summer week flow, then an agency pays a charge for
each cubic-foot per second above the average.
Staff will give a presentation on the four components of MWD’s proposed rate structure
and the potential impacts on the Carlsbad Municipal Water District.
FISCAL IMPACT:
There is no fiscal impact at this time as a result of this informational item.