Why Did Rates Change?

Right-sizing rates

To determine the exact cost of providing water, the City of Chino commissioned an independent rate consultant to perform a cost-of-service analysis. The study, which made recommendations based on the revenue required to meet operation and maintenance and capital needs of the City’s water utility, can be found here.

After a public hearing, the City Council approved the new rates and a budget-based rate structure, which took effect beginning October 21, 2019. The new rates and budget-based rate structure ensure water efficiency, the ability to maintain the water system, and financial stability for the City’s utility.

The expenses driving the change include:

  • Cost of purchased water

  • Operation and maintenance of groundwater wells

  • Electricity for pumping water

  • Water treatment and storage

  • Distribution facilities

  • Water recycling

  • Meter reading and replacement

  • Billing and customer service

Water budget-based rates are designed to meet each customer’s unique needs when water is used efficiently indoors and out. Various factors go in to developing the budgets, including the number of residents in the home and amount of irrigated, landscaped area.

Budget-based rates have been proven to reduce demand, communicate the need to conserve, and change water use behavior by incentivizing customers who use water efficiently with the lowest rates. Making this change ensures a reliable supply of high-quality water for future generations of Chino residents and businesses.

Why Did Rates Change?

Right-sizing rates

To determine the exact cost of providing water, the City of Chino commissioned an independent rate consultant to perform a cost-of-service analysis. The study, which made recommendations based on the revenue required to meet operation and maintenance and capital needs of the City’s water utility, can be found here.

After a public hearing, the City Council approved the new rates and a budget-based rate structure, which took effect beginning October 21, 2019. The new rates and budget-based rate structure ensure water efficiency, the ability to maintain the water system, and financial stability for the City’s utility.

The expenses driving the change include:

  • Cost of purchased water

  • Operation and maintenance of groundwater wells

  • Electricity for pumping water

  • Water treatment and storage

  • Distribution facilities

  • Water recycling

  • Meter reading and replacement

  • Billing and customer service

Water budget-based rates are designed to meet each customer’s unique needs when water is used efficiently indoors and out. Various factors go in to developing the budgets, including the number of residents in the home and amount of irrigated, landscaped area.

Budget-based rates have been proven to reduce demand, communicate the need to conserve, and change water use behavior by incentivizing customers who use water efficiently with the lowest rates. Making this change ensures a reliable supply of high-quality water for future generations of Chino residents and businesses.