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Simplified two-tier water rate structure proposed.


Mayor's panel considers new system for DWP DWP Department of Work and Pensions (UK)
DWP Drinking Water Program
DWP Dynamic Weapon Pricing (gamin, Counter-Strike: Source)
DWP Department of Water & Power
DWP Drinking Water Protection
 charges

Water rates in the city of Los Angeles
For the city, see Los Angeles, California.
The City of Los Angeles was a streamlined passenger train jointly operated by the Chicago and North Western Railway and the Union Pacific Railroad.
, facing their first revamping in 15 years, would be simplified into a two-tier structure under a draft proposal made public last week by a "blue-ribbon" advisory committee appointed by Mayor Tom Bradley Noun 1. Tom Bradley - United States politician who was elected the first black mayor of Los Angeles (1917-1998)
Bradley, Thomas Bradley
.

One aim is to better reward conservation-minded businesses and other consumers.

The committee's tentative recommendations support a "water offset policy" that asks developers to subsidize sub·si·dize  
tr.v. sub·si·dized, sub·si·diz·ing, sub·si·diz·es
1. To assist or support with a subsidy.

2. To secure the assistance of by granting a subsidy.
 water conservation efforts elsewhere, like at schools and hospitals, to balance the strain they will put on local water supplies. Rejected, however, are specific development fees that would force newcomers to bear all the costs of the new water-delivery systems they will necessitate ne·ces·si·tate  
tr.v. ne·ces·si·tat·ed, ne·ces·si·tat·ing, ne·ces·si·tates
1. To make necessary or unavoidable.

2. To require or compel.
.

Bradley formed the 25-member volunteer committee last summer to help restructure water rates charged by the city Department of Water & Power after it began drawing widespread criticism for an "inequitable" rate system that failed to cope fairly with drought-restricted supplies.

Committee members met June 10 with a City Council water-rate panel and disclosed their target numbers for the new rates. A final recommendation was promised by June 30, after which the mayor and City Council would use it to craft a new rate structure.

Essentially, the committee favors charging a cheaper rate for basic usage, and a far more expensive rate -- 67 percent higher for businesses -- would kick in for excessive usage.

"This (proposal) is simpler and more equitable for all classes of customers," said committee member Dr. Darwin C. Hall, an economics professor at Cal State University Long Beach.

Currently, businesses pay a fixed "service availability charge" ranging from a few bucks to more than $700 a month, depending on the gauge of water pipe serving them, plus a base rate, plus several add-on rates for supplemental purchases, energy conservation subsidies and other items, producing a quite complicated bill.

The simplified rate "will prevent the perception that those who conserve are still penalized pe·nal·ize  
tr.v. pe·nal·ized, pe·nal·iz·ing, pe·nal·iz·es
1. To subject to a penalty, especially for infringement of a law or official regulation. See Synonyms at punish.

2.
," said committee Chairman Anthony Willoughby.

Last year, the fifth year of California's drought, DWP customers were asked to use 15 percent less water than they did in 1986, with penalties for over-users. Overall consumption dropped a staggering 30 percent.

DWP was hit with a whopping revenue loss and began hiking hiking

Walking, often among hills or mountains, as recreational sport. It represents an activity in its own right and also figures in backpacking, camping, hunting, mountaineering, and orienteering.
 rates, drawing flak from residential and some business customers. There was no other choice, said DWP officials, because their costs are largely fixed.

But not everyone is convinced of that, the City Council panel was told last week.

"I read in the newspapers about chartered airplanes and $100 lunches (enjoyed by DWP officials) that they probably chase with Dom Perignon Dom Perignon

renowned vintage French champagne. [Western Cult.: Misc.]

See : Luxury
," said Andre Vaughn, senior vice president of the Apartment Association of Greater L.A. "It seems to me that if we cut the fat (at the water agency) we may never have to raise the rates," said Vaughn, who worried a new rate regimen regimen /reg·i·men/ (rej´i-men) a strictly regulated scheme of diet, exercise, or other activity designed to achieve certain ends.

reg·i·men
n.
1.
 would somehow spell higher bills for his group's 25,000 members.

Under the committee's plan, each DWP billing unit (one unit equals 748 gallons) sold to businesses will cost $1.75 during the months of November through May. The current rate is $1.39 and will rise to roughly $1.70 July 1. The new $1.75 rate would persist during the summer for up to 125 percent their winter usage, and any excess would sell for $2.92 per unit -- a 67 percent hike.

Although the new rates are clearly higher, the flat "service" charge is dropped, and most businesses will find a net savings for equal water use, said committee members.

Businesses might be tempted "Tempted" was the second single released from Squeeze's fourth album, East Side Story. Though it failed to crack the Top 40 in the UK or the U.S., over the years "Tempted" has become one of Squeeze's most well known songs, especially in North America.  to use extra water during the winter to gain more freedom for the summer. But the city's sewer SEWER. Properly a trench artificially made for the purpose of carrying water into the sea, river, or some other place of reception. Public sewers are, in general, made at the public expense. Crabb, R. P. Sec. 113.  charge would discourage that, said Hall, because that is geared to total water use.

Most affected might be businesses that use much more water in the summer, like bottlers, nurseries and golf courses.

Even if the plan is adopted by the council, "We're going to have to come back in about year, maybe, and fine-tune it," predicted Willoughby.
COPYRIGHT 1992 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Article Details
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Author:White, Todd
Publication:Los Angeles Business Journal
Date:Jun 15, 1992
Words:667
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