Water Pricing

By Shawn Dewane

Affordable Water Rates and Conservation

Water Districts have high fixed operating costs. They consist of labor, energy and replacing the aging pipes and water supply infrastructure. Most people are surprised to learn that the water district does not save money when people use less water. People are also surprised to learn that their water rates increase the more they conserve. This happens because the fixed costs remain about the same no matter how much water is delivered. It is more efficient to have a stable and reliable water supply that consumers use in the production and service of our economy and their activities of daily living. Water conservation or the wise use of water is important as we are all stewards of the resource.

Another way to keep rates low is to increase the supply of water and finance the district operation at the lowest possible cost. Building large public infrastructure project is expensive; most are financed over long periods through the issuance of bonds. The interest expense on those bonds is a significant obligation of the Orange County Water District. I am proud of the role that I have had in creating and preserving our AAA credit rating. A high credit rating is like a good credit score; it keeps the interest rate low and save ratepayers money.