Municipal Water District*

- Only a few water districts in Orange County use tiered pricing for water conservation. RESPONSE: Agree Water agencies and city water departments consider a myriad of elements when determining a rate structure for their customers. Currently, most all water agencies in Orange County use some form of tiered pricing. However, out of the 31 retail agencies in Orange County, 6 or 7 currently have some form of budget based tiered rates or allocation based rates. We believe more and more agencies will be moving in this direction. In working with a number of our agencies over the past 3 or 4 years, a very basic but driving consideration is the local sentiment and philosophy of the governing body in regards to determining what level of water use is appropriate and what level becomes excessive. Not all agencies approach rates, budgets, and reserve funding in the same manner, but typically these decisions are vested in the philosophy embedded in the local communities. Although data has indicated that budget based tier pricing can improve the level of water use efficiency and the pricing signal sent to the consumers, there are many other demonstrated ways water agencies can achieve that goal.

- Cadiz, while a controversial water supply and storage project, is a possible future source of water. RESPONSE: Agree MWDOC has a responsibility to consider and explore all new sources of water for long term water reliability and sustainability.

- Bay Delta Project is critical to ensure the continual flow of imported water into Orange County. RESPONSE: Agree The Bay Delta Conservation Plan and construction of an alternate conveyance system is the largest water delivery effort in California in over half a century. Fixing the Bay Delta, by investing in a new conveyance system and in environmental restoration projects, is necessary to ensure water reliability and sustainability to Orange County and to 25 million Californians throughout the state. There is not a more important issue facing California - the State will not be able to keep operating effectively with a broken water supply system.