IRWD successfully implemented a budget based rate structure in the early 1990s. Since its introduction, per acre water consumption dropped significantly while the health of landscapes within IRWD’s service area improved as follows:
- Between 1992 and 2005, the average landscape water use within the district decreased from 4.2 acre-feet per acre per year to 1.9 acre-feet per acre per year, a 61 percent reduction.
- From 2001 to 2006, irrigated area in the district increased 280 percent, but total landscape water usage only increased 70 percent.
IRWD Rate Structure
IRWD’s budget based rate structure is an effective conservation tool because it allows the District to use property-specific water budgets and tiered pricing to provide our customers with economic incentives for efficient water use. This rate structure promotes the efficient use of water by providing customers with economic signals as their use increases. The rate structure also provides the foundation for IRWD’s water conservation programs. Revenue from higher tier water use is “reinvested” to promote long-term improvements in water use efficiency and support District environmental programs. To learn more about water rates and see sample bill calculations, please visit Understanding Your Bill.
Integral components of a budget based rate structure include the following:
- Establishment of a basic budget for each customer account that provides a reasonable amount of water for the customer’s needs and property characteristics, including the number of occupants, lot size, size of irrigated area, climate, etc.
- A basic charge per volumetric unit for water usage within a customer’s basic budget.
- Conservation charges imposed for increments of water used in excess of the basic budget.
- Billing based on metered water use.
- Metered and other fixed charges that may be imposed to cover fixed costs of service.
