2024 Water Rate Study

Palmdale Water District seeks proposals for completing an updated, Proposition 218 compliant financial analysis and multi-year water rate plan, along with support for the associated outreach effort. The District is a California Irrigation District serving approximately 127,000 people with approximately 27,600 service connections in the southern Antelope Valley, approximately 60 miles north of downtown Los Angeles. The District owns and operates a 35-mgd conventional surface water treatment plant drawing from the East Branch of the California Aqueduct and Littlerock Reservoir, maintaining a production ratio of approximately 60% surface water and 40% groundwater.

The current water rate structure, adopted in fall 2019, includes a fixed meter charge and tiered commodity rates based on customer usage. The rate structure varies by customer class: single-family and most multi-family residential customers receive allocations based on occupants, parcel size, weather, and irrigation factors; remaining multi-family residential and commercial/industrial customers receive allocations based on three-year historical averages; and irrigation customers receive allocations based on evapotranspiration and irrigation factors. The most recent rate plan (2019) included a drought surcharge and an 8.1% increase for calendar years 2020 through 2024. 2023 water consumption data shows single-family residential accounts represent 93.44% of total accounts but only 66.56% of total volume, while irrigation accounts represent 0.94% of accounts but 5.96% of volume.

The consultant must complete a comprehensive updated rate study with multi-year rate plan recommendations that complies with Proposition 218 requirements and includes support for related outreach activities. Key dates include a Q&A deadline of March 15, 2024, and a proposal submission deadline of March 26, 2024. The procurement contact is Dennis Hoffmeyer, Finance Manager/CFO, at dhoffmeyer@palmdalewater.org or (661) 947-4111 Ext. 1021.