El Dorado Irrigation District customers could end up paying more for less in a drought.
District officials are considering a rate schedule that would go into effect if a drought were declared.
Typically when a water agency goes into drought mode, "your costs go up while your revenue goes down," Doug Dove of Bartle Wells Associates, the district's financial adviser, told board members Monday.
Stepped-up training for employees, public outreach and enforcement of rules against wasting water boost costs, he said.
At the same time, if customers respond as desired and use less water, income from water sales declines.
The El Dorado Irrigation District, which serves about 100,000 customers in western El Dorado County, has not declared a drought.
But officials say a third dry winter could lead to mandatory conservation measures.
District rates are based on metered usage.
Even if water is in short supply, the district must generate enough revenue to cover maintenance and operating costs, and meet debt-service requirements.
The drought-rate plan would include a surcharge to cover drought-related expenses. The proposed surcharge would range from 45 cents per bill under a Stage 1 drought, requiring a 15 percent reduction in water use, to $1.24 per bill during a Stage 3 drought, or 50 percent reduction in use.
As an incentive to conserve, water rates also would be raised during a declared drought.
Those who consume large quantities of water would see the steepest rate increases.
The board on Dec. 15 will consider approving the drought rates along with a proposed restructuring of its regular water rates.
Dove said the proposed rate restructuring would be revenue neutral, but it would change the three rate tiers to encourage conservation, resulting in a rate increase for some customers.
Primarily affected among residential customers would be those using more than 4,500 cubic feet of water during a two-month period.
They would move into a higher rate category that currently applies only to those using more than 20,000 cubic feet.
Before any rates can be raised, the district must give written notice to ratepayers.
Under Proposition 218, the "Right to Vote on Taxes Act," approved by California voters in 1996, public agencies must reject an increase if written protests are submitted by a majority of landowners.
Call The Bee's Cathy Locke, (916) 608-7451.
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