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SPECIAL RATE NOTICE SPRING 2021

You’re invited to attend a Public Hearing about your rates and charges The Board of Directors of Western Municipal Water District (Western) will host a Public Hearing to consider changes to the rates and charges outlined in this document. We invite you to join the conversation and participate in the public meeting.

Comment in support or protest of the proposed rates

Date: Wednesday, June 2, 2021 Time: 6 p.m. Location: 14205 Meridian Parkway Riverside, CA 92518 Virtual:  Zoom link available at wmwd.com/BoardMeeting

Any customer or property owner may appear at the hearing to make comments regarding the proposed changes. To submit a formal written letter of support or protest of the proposed rates and charges, customers and property owners who are directly liable to pay water bills may use any one of the following methods and must meet all criteria below to be considered valid. † † † †

Include customer name, parcel number and/or service address. Indicate that the letter of support or protest is in response to the proposed water rates. Hand-signed (if mailed or dropped off) or include an image of the protestor’s signature (if emailed). Received prior to the conclusion of the Public Hearing on June 2, 2021.

Mail Western Municipal Water District Attention: 2021 Proposed Rates 14205 Meridian Parkway Riverside, CA 92518 Email boardsecretary@wmwd.com Note: Protests submitted by electronic means other than the email noted above will not count as formal written protests. In person Outdoor drop box at: 14205 Meridian Parkway, Riverside, CA 92518

Get connected. Stay informed.

What’s Inside 2

Investing in reliability

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Your rates keeping pace

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Your water bill and rate structure

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2021 proposed rates

† Read the full notice † Sign up for notifications at wmwd.com/Subscribe † Learn about information sessions at wmwd.com/2021ProposedRates † Provide a letter of support (or opposition) † Participate in the Public Hearing on June 2, 2021 This notice is intended to convey general information about the proposed rates. More information can be found in the cost-of-service study documents at wmwd.com/2021ProposedRates.


Investing in reliability Western serves an area where droughts are a regional reality. Increasing local water supplies and regional sustainability, and maintaining critical infrastructure, are vital to making sure that Western customers have a system and water supply resource they can rely on. In the past five years, Western has been awarded more than $27 million in grant funding to support major system improvements, regional partnerships and customer technology.

Drinking Water

Wastewater (Sewer)

Desalination

Western Water Groundwater

Recycled Water

Stormwater Capture/Recharge

Water supply resources and your delivery system

In Riverside, we’ve constructed an interconnected local water system that will increase supply reliability to homes, schools and businesses. Additionally, with regulations guiding water and sewer treatment requirements, Western is making sure our production, distribution, collection systems and treatment procedures continue to exceed the evolving state and federal standards. By connecting the drops for Riverside County with these important projects, our system is more reliable and designed for long-term service to our region.

Watersupply supply sources | Riverside service area Water sources

4%

40%

Recycled Water

56% Local Water

Imported Water *Three-year average from 2017-2019

Water service reliability costs

$ 46%

46% $20.8M

$3.8M

Purchased water (local and imported)

Water system operations, maintenance and energy

Asset replacement and administration

$21.2M

8%

Visit wmwd.com/CIFP to learn more about how Western is securing your water future.

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YOUR RATES KEEPING PACE

Keeping up with rising costs guarantees dependable services To keep pace with rising costs, Western’s Board of Directors will consider a proposed rate adjustment that will affect your water rates and system charges for the next four years, effective with bills issued on or after July 1, 2021. A cost-of-service analysis of Western’s current rates has indicated a need for increased rates to respond to the increasing costs of: • Purchasing imported and local water supplies. • Complying with state-mandated drinking water regulatory requirements. • Maintaining and operating the production and distribution systems to and from your property.

Western is a municipal water district governed by the laws of California, and we cannot and will not charge you more than what is necessary to provide service.

Securing your water supply, now and for the future

Western is here for you every day, guaranteeing service 24 hours a day, 7 days a week, 365 days a year. We think about water all day, so you don’t have to. This special notice will help you learn more about how Western is working hard to keep your water flowing, your landscape hydrated, and your rates as low as possible, now and in the future. But it’s just water… why is it so expensive?

Your water flows through hundreds of miles of aqueducts and pipelines, and this journey to your home is expensive. Nearly 50 percent of all costs included in the proposed rate adjustment for Western’s Riverside service area are outside of Western’s control because they are related to the purchase and delivery of imported water from the Metropolitan Water District of Southern California or local supplies from the City of Riverside. The remaining costs are associated with the operation, maintenance, and administration of Western’s local system made up of 776 miles of pipeline, 128 pumps, 38 water storage reservoirs, 24 lift stations, and two wastewater treatment plants. Additionally, energy costs are increasing, so delivering water is costing more every year. Western is committed to working to keep costs, and therefore rates, as low as possible for all customers by proactively applying for grant funding, securing local water supplies and optimizing our delivery system. You can view the cost-of-service study at wmwd.com/2021ProposedRates.

Part of the California State Water Project that brings water from Northern California, these aqueducts at the south end of the San Joaquin Valley take pumped water uphill, over the Grapevine, en route to our region.

The results of the study and proposed rate changes are in no way connected to the global COVID-19 pandemic.

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UNDERSTANDING YOUR WATER BILL AND RATE STRUCTURE Western’s rate structure for water service is comprised of both variable and fixed charges.

Variable charges The variable charges described below are based on the number of units of water delivered to a property during the billing period. A “unit” of water is one hundred cubic feet (HCF), which is equal to 748 gallons. Commodity charge This is the cost of water used during the billing period. This charge pays for the actual cost to purchase water and/or pump and treat water from local wells. It also recovers a portion of the costs to operate and maintain the entire water system. Reliability charge This charge supports the cost of capital expenditures for infrastructure that enhances local water supply reliability. This charge also supports building projects that lessen our need to import water from Northern California. Pumping charge This charge supports the cost of energy needed to move water to the Western storage reservoir that serves your area. Some service areas, or power zones, require more energy than others due to their location and elevation. To find your Power Zone, visit wmwd.com/MyPowerZone.

Fixed charges The fixed charges described below support the system of pipelines, pumps, and reservoir tanks needed to meet the total demand from all of our customers at any given time. The potential capacity demand is reflected by the size of the meter serving the customer’s property. The larger the meter, the greater the potential water capacity demand. MWD Readiness-to-Serve charge The Metropolitan Water District of Southern California (MWD) supplies most of Western’s imported water. This charge supports MWD’s system capital costs for emergency and standby storage facilities, such as Lake Skinner and Diamond Valley Lake, that deliver supplies reliably during droughts, emergencies, major facility outages, hydrologic variability, and variances in local resources. System charge This charge recovers a portion of Western’s costs such as system maintenance, repair and replacement, as well as water treatment, water quality testing, environmental compliance, meters, and administrative costs.

Pass-through provision The proposed water Commodity and MWD Readiness-to-Serve (RTS) Charges are based on current and estimated future rates and charges to be imposed on Western by our water providers. If the actual rates and charges imposed on Western by our water providers are higher than the estimated amounts, then Western is proposing to pass through to our customers the incremental difference by increasing the proposed rates of the water Commodity and/or MWD RTS Charge. Such increases, if any, will not exceed 12 percent per year, and in no event will such rates be increased by more than the cost of providing water service. In addition, the proposed water Pumping Charge is based on current and estimated future rates and charges to be imposed on Western by its energy providers. If the actual rates and charges imposed on Western are higher than the estimated amounts, then Western is proposing to pass through the incremental difference by increasing the proposed rates of the water Pumping Charge. Such increases, if any, will not exceed 12 percent per year, and in no event will such rates be increased by more than the cost of providing water service.

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PROPOSED WATER SERVICE RATES A typical customer using non-potable water (recycled water or untreated groundwater) will see an average monthly bill increase of 1.6 percent, or approximately $13.24, in the first year of the proposed rate adjustment. Pending adoption, the proposed rates will go into effect for all water use and service charges appearing on billing statements issued on or after July 1, 2021, and each year thereafter for the next three years.

McAllister Pump Station

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Variable charges Commodity Charge (per HCF, 1 HCF, = 748 gallons) Pumping Charge (per HCF) Power Zone 1 & 2 Power Zone 3 Power Zone 4 Power Zone 5 Power Zone 6 Pumping Charge (per HCF) Potable Power Zone 201 Power Zone 202 Power Zone 203 Power Zone 204 Power Zone 205 Power Zone 206 Power Zone 207 Reliability Charge (per HCF)

Current $2.327 $0.112 $0.153 $0.378 $0.657 $0.727

PROPOSED RATES Effective with water use and service billed on or after: 07/01/21 07/01/22 07/01/23 07/01/24 $2.395

$2.524

$2.658

$2.802

A pumping charge study was performed and new power zone boundaries were established, effective July 1, 2021. Find your new Power Zone at wmwd.com/MyPowerZone.

N/A N/A N/A N/A N/A N/A N/A

$0.155 $0.163 $0.197 $0.290 $0.604 $0.713 $0.242

$0.214 $0.238 $0.254 $0.305 $0.634 $0.749 $0.254

$0.296 $0.347 $0.327 $0.320 $0.666 $0.786 $0.267

$0.409 $0.506 $0.421 $0.336 $0.699 $0.825 $0.280

$0.420

$0.420

$0.420

$0.420

$0.420

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Fixed charges Current System Charge (per month) - based on meter size 5/8" Meter $30.43 3/4" Meter $41.40 1" Meter $62.99 1.5" Meter $117.13 2" Meter $139.31 3" Meter $333.98 4" Meter $647.69 6" Meter $847.75 8" Meter $986.44 10" Meter $1,157.24 12" Meter $1,426.61

PROPOSED RATES Effective with water use and service billed on or after: 07/01/21 07/01/22 07/01/23 07/01/24 $26.29 $36.11 $55.87 $105.49 $125.82 $304.30 $597.76 $1,041.68 $1,232.84 $1,470.43 $1,810.84

MWD Readiness-to-Serve Charge (per month) - based on meter size 5/8" Meter $1.47 $1.33 3/4" Meter $2.21 $1.99 1" Meter $3.69 $3.32 1.5" Meter $7.37 $6.63 2" Meter $8.85 $7.96 3" Meter $22.12 $19.88 4" Meter $44.24 $39.76 6" Meter $99.54 $89.46 8" Meter $132.72 $119.28 10" Meter $176.96 $159.04 12" Meter $248.85 $223.65

$27.19 $37.36 $57.81 $109.16 $130.19 $314.89 $618.61 $1,235.61 $1,479.24 $1,783.62 $2,192.07

$28.13 $38.65 $59.81 $112.95 $134.71 $325.85 $640.20 $1,429.54 $1,725.64 $2,096.81 $2,573.30

$29.09 $39.99 $61.89 $116.88 $139.39 $337.20 $662.55 $1,479.47 $1,972.04 $2,410.00 $2,954.53

$1.42 $2.13 $3.55 $7.10 $8.52 $21.30 $42.60 $95.85 $127.80 $170.40 $239.63

$1.44 $2.16 $3.60 $7.20 $8.64 $21.58 $43.16 $97.11 $129.48 $172.64 $242.78

$1.52 $2.28 $3.79 $7.57 $9.09 $22.71 $45.42 $102.20 $136.26 $181.68 $255.49

Lockwood Water Tank

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@BeingWaterWise

@WesternMWD

General Information: 951.571.7104

Email: outreach@wmwd.com

RNP-NS-2021

@WesternMWD

Website: wmwd.com

Western Municipal Water District 14205 Meridian Parkway, Riverside, California 92518

If you are experiencing financial hardship as a result of the pandemic or are behind on your bill, Western has programs and payment plans available to help you. For program information and to determine eligibility, visit wmwd.com/PaymentAssistance. You can also contact our Customer Service team Monday through Friday, 8 a.m. to 5 p.m., at 951.571.7104 or billing@wmwd.com.

Customer payment assistance programs

Thursday, April 22, 2021 | 6 to 7:30 p.m.

Thursday, April 22, 2021 | 9 to 10:30 a.m.

Customer Information Sessions We strive to remain transparent and educate our customers about what to expect during proposed rate adjustments. A series of virtual customer information sessions are scheduled to share the process and encourage our customers to join the conversation. Join us in securing your water future.

Profile for WesternMWD Team

Western Municipal Water District Rate Notice 2021: Riverside Service Area Non-Potable No Sewer  

Western Municipal Water District Rate Notice 2021: Riverside Service Area Non-Potable No Sewer  

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