Proposing New Water Rates
On Tuesday, August 5, 2014, Glendale City Council approved new water revenue increases of 4%, 4%, 4%, 4%, for the next four years. The new rates will be effective September 1, 2014. This new rate structure is designed to correct Glendale Water & Power’s (GWP) revenues after the flawed April 2012 rates designed by Willdan Financial Services were published. Their miscalculation of the 2012 rates was due to the mistaken use of bimonthly residential and multi-family tiered rates, which did not increase the needed revenue. This resulted in an overall revenue shortage in the water operation. The City also uncovered problems and miscalculations of fire line charges for lines. GWP, with the assistance of Bartle Wells Associates, has recalculated the water rates in their entirety – ensuring quality water and quality services to Glendale Water customers
The new rates will cover costs essential to the operation and maintenance of the water system; such as wells, main pipes, motors/pumps, reservoirs, main connections, and storage tanks. These costs are allocated between customers based on the Cost of Service Analysis.
The approved revenue increase also included a drought surcharge. City Council has, however, suspended the implementation of the new drought charge for six months to evaluate what future steps the State Water Agency may take due to the current drought situation. For answers to FAQ’s regarding the new water rates and water conservation, contact GWP’s Customers Service Department at 818-548-3300.