Rate Setting as a Water Conservation Tool Introduction/purpose The State of California (State) is subject to periodic

Conclusions 7

• CL1
  Morro Bay has not revised its water rate schedule since 1994.
• CL2
  Paso Robles, Avila Beach CSD, and San Simeon CSD have uniform water rates that do not increase unit cost as consumption increases.
• CL3
  Only Atascadero MWC bills show rate tiers, tier consumption and tier charges.
• CL4
  Water meters are not used for all urban development outside of cities served by a water company.
• CL5
  Apartment buildings in the seven cities and urban areas outside of the cities typically do not have water meters that register indoor water use for individual units.
• CL6
  Residential sewer providers that base charges on volume of water consumed do not clearly indicate on their bills that water volume affects sewer charges, with the exception of the City of San Luis Obispo
• CL7
  A few water service providers have not incorporated tiered pricing into their rate structures. Of those providers using tiered rates, only two indicate tiers on customer bills and only one shows usage by tiers. Thus, water bills are underutilized for promoting conservation. Several sewer service providers base charges on volume of water used, but only one clearly indicates this on customer bills. Therefore, sewer bills are also underutilized for promoting water conservation. Additional opportunities for water conservation exist through metering of both small water system customers and individual apartment units. 2010-2011 San Luis Obispo County Grand Jury Page 10 FINDINGS & RECOMMENDATIONS FINDING 1: Morro Bay has not revised its water rate schedule since 1994. RECOMMENDATION 1: Morro Bay should review its water rate schedule. FINDING 2: Paso Robles, Avila Beach CSD, and San Simeon CSD have uniform water rates that do not increase unit cost as consumption increases. RECOMMENDATION 2: Paso Robles, Avila Beach CSD, and San Simeon CSD should consider adopting tiered water rates that target high volume users. FINDING 3: Only Atascadero MWC bills show rate tiers, tier consumption and tier charges. RECOMMENDATION 3: Arroyo Grande, Grover Beach, Morro Bay, Pismo Beach, San Luis Obispo, Cambria CSD, Heritage Ranch CSD, Los Osos CSD, Nipomo CSD, Oceano CSD, San Miguel CSD, and Templeton CSD should consider revising water bills to show rate tiers, water usage for each tier and the charges for each tier. FINDING 4: Water meters are not used for all urban development outside of cities served by a water company. RECOMMENDATION 4: The County should consider adopting an ordinance for urban development outside of cities served by a water company, which would require that new development be metered and that existing developments be metered upon ownership transfer. 2010-2011 San Luis Obispo County Grand Jury Page 11 FINDING 5: Apartment buildings in the seven cities and urban areas outside of the cities typically do not have water meters that register indoor water use for individual units. RECOMMENDATION 5: The cities and County should consider adopting an ordinance that would require new apartment buildings to have meters that register indoor water used by individual units. To reduce costs, meters could be a type intended only for use by apartment building owners, instead of those supplied by water providers for water service hook-ups. FINDING 6: Residential sewer providers that base charges on volume of water consumed do not clearly indicate on their bills that water volume affects sewer charges, with the exception of the City of San Luis Obispo RECOMMENDATION 6: Arroyo Grande, Grover Beach, Morro Bay, Avila Beach CSD, Cambria CSD, Heritage Ranch CSD, and San Simeon CSD should consider revising sewer bills to show that water usage affects sewer charges.

Agency Responses 1

Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.