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PROPOSED ZONE 7 BI-MONTHLY FIXED CHARGE
<br /> Set Charge Based on Meter Size
<br />Meter
<br />Size
<br />Current
<br />Rates
<br />Effective
<br />Jan. 1, 2026
<br />Effective
<br />Jan. 1, 2027
<br />Effective
<br />Jan. 1, 2028
<br />Effective
<br />Jan. 1, 2029
<br />5/8"$18.48 $46.43 $48.75 $51.18 $53.74
<br />3/4"$27.71 $69.64 $73.12 $76.78 $80.61
<br />1"$50.81 $116.06 $121.87 $127.96 $134.36
<br />1 1/2"$110.87 $232.13 $243.73 $255.92 $268.71
<br />2"$147.82 $371.40 $389.97 $409.47 $429.94
<br />3"$415.78 $812.44 $853.06 $895.71 $940.50
<br />4"$729.91 $1,462.39 $1,535.51 $1,612.29 $1,692.90
<br />6"$1,293.52 $3,017.63 $3,168.52 $3,326.94 $3,493.29
<br />8"$3,233.81 $6,499.52 $6,824.49 $7,165.72 $7,524.00
<br />10"$5,081.71 $9,749.28 $10,236.74 $10,748.58 $11,286.01
<br /> PROPOSED ZONE 7 VARIABLE CHARGE
<br /> Billed Per Unit of Water Used (i.e. CCF). 1 CCF = 748 Gallons
<br />$3.66 $2.73 $2.86 $3.01 $3.16
<br /> PROPOSED COMBINED BI-MONTHLY FIXED CHARGES
<br /> Set Charge Based on Meter Size
<br />Meter
<br />Size
<br />Current
<br />Rates
<br />Effective
<br />Jan. 1, 2026
<br />Effective
<br />Jan. 1, 2027
<br />Effective
<br />Jan. 1, 2028
<br />Effective
<br />Jan. 1, 2029
<br />5/8"$24.01 $58.33 $67.08 $72.45 $78.25
<br />3/4"$34.30 $84.10 $96.72 $104.46 $112.82
<br />1"$60.06 $135.62 $155.97 $168.45 $181.93
<br />1 1/2"$127.01 $264.45 $304.12 $328.45 $354.73
<br />2"$168.21 $419.04 $481.90 $520.46 $562.10
<br />3"$466.94 $908.56 $1,044.85 $1,128.44 $1,218.72
<br />4"$817.14 $1,629.97 $1,874.47 $2,024.43 $2,186.39
<br />6"$1,445.48 $3,356.19 $3,859.62 $4,168.39 $4,501.87
<br />8"$3,608.59 $7,220.88 $8,304.02 $8,968.35 $9,685.82
<br />10"$5,668.70 $10,827.91 $12,452.10 $13,448.27 $14,524.14
<br /> PROPOSED COMBINED VARIABLE CHARGE
<br /> Billed Per Unit of Water Used (i.e. CCF). 1 CCF = 748 Gallons
<br />$6.13-$8.39 $5.70 $6.56 $7.09 $7.66
<br /> PROPOSED CITY BI-MONTHLY FIXED CHARGE
<br /> Set Charge Based on Meter Size
<br />Meter
<br />Size
<br />Current
<br />Rates
<br />Effective
<br />Jan. 1, 2026
<br />Effective
<br />Jan. 1, 2027
<br />Effective
<br />Jan. 1, 2028
<br />Effective
<br />Jan. 1, 2029
<br />5/8"$5.53 $11.90 $18.33 $21.27 $24.51
<br />3/4"$6.59 $14.46 $23.60 $27.68 $32.21
<br />1"$9.25 $19.56 $34.10 $40.49 $47.57
<br />1 1/2"$16.14 $32.32 $60.39 $72.53 $86.02
<br />2"$20.39 $47.64 $91.93 $110.99 $132.16
<br />3"$51.16 $96.12 $191.79 $232.73 $278.22
<br />4"$87.23 $167.58 $338.96 $412.14 $493.49
<br />6"$151.96 $338.56 $691.10 $841.45 $1,008.58
<br />8"$374.78 $721.36 $1,479.53 $1,802.63 $2,161.82
<br />10"$586.99 $1,078.63 $2,215.36 $2,699.69 $3,238.13
<br /> PROPOSED CITY VARIABLE CHARGE
<br /> Billed Per Unit of Water Used (i.e. CCF). 1 CCF = 748 Gallons
<br />$2.47-$4.73 $2.97 $3.70 $4.08 $4.50
<br /> PROPOSED RECYCLED WATER BI-MONTHLY FIXED CHARGE
<br /> Set Charge Based on Meter Size for Recycled Water Customers Only
<br />Meter
<br />Size
<br />Current
<br />Rates
<br />Effective
<br />Jan. 1, 2026
<br />Effective
<br />Jan. 1, 2027
<br />Effective
<br />Jan. 1, 2028
<br />Effective
<br />Jan. 1, 2029
<br />5/8"$5.53 $10.48 $12.06 $13.03 $14.08
<br />3/4"$6.59 $12.32 $14.17 $15.31 $16.54
<br />1"$9.25 $16.01 $18.42 $19.90 $21.50
<br />1 1/2"$16.14 $25.21 $29.00 $31.32 $33.83
<br />2"$20.39 $36.25 $41.69 $45.03 $48.64
<br />3"$51.16 $71.22 $81.91 $88.47 $95.55
<br />4"$87.23 $122.76 $141.18 $152.48 $164.68
<br />6"$151.96 $246.06 $282.97 $305.61 $330.06
<br />8"$374.78 $522.13 $600.45 $648.49 $700.37
<br />10"$586.99 $779.79 $896.76 $968.51 $1,046.00
<br /> PROPOSED RECYCLED WATER VARIABLE CHARGE
<br /> Billed Per Unit of Recycled Water Used (i.e. CCF). 1 CCF = 748 Gallons
<br />$4.81 $5.23 $6.02 $6.51 $7.04
<br />DROUGHT CHARGES
<br />Drought rates, or consumption-based surcharges, serve as a tool to effectively respond to water shortage emergencies and recover essential funding
<br />necessary for operating and maintaining the water system. Water shortages occur when there is insufficient water to serve customers and can arise for
<br />various reasons, including earthquakes, power outages, or extended drought. In these situations, water usage declines, resulting in reduced revenues.
<br />Drought rates are implemented based on the stages of mandated water usage reduction, as outlined in the City’s Water Shortage Contingency Plan.
<br />Drought rates can only be enacted if the City declares a water shortage emergency and decides to implement them. Other options include using reserve
<br />funds, implementing a partial drought rate, and deferring capital improvement projects.
<br />The current drought rate structure allows customers a bi-monthly usage
<br />allotment of 10 CCF that is exempt from drought rate charges. Based on
<br />updated consumption patterns, the City has proposed reducing this
<br />allotment to 8 CCF. Therefore, any usage exceeding this allotment will be
<br />charged this surcharge in addition to the regular water rates.
<br />Based on this change and changes to the City’s water rate structure
<br />related to achieving cost recovery of Zone 7’s fixed costs, the table to
<br />the right shows the City’s proposed drought rates for the next four years.
<br /> PROPOSED DROUGHT RATES
<br /> Set Surcharge Based on Drought Stage (over 8 CCFs of usage)
<br />Effective Date Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6
<br />Jan. 1, 2026 $0.44 $1.02 $1.84 $3.08 $5.18 $9.54
<br />Jan. 1, 2027 $0.51 $1.18 $2.12 $3.55 $5.96 $10.98
<br />Jan. 1, 2028 $0.56 $1.28 $2.29 $3.84 $6.44 $11.86
<br />Jan. 1, 2029 $0.61 $1.39 $2.48 $4.15 $6.96 $12.81
<br /> CURRENT PLEASANTON BILL - 2025
<br /> Structure: 32% Zone 7 Fixed Cost Recovery,
<br /> Tiered Variable Rates, Single Family 5/8" Meter
<br />Charge CCF Rate Total
<br /> Pleasanton Water
<br /> Fixed Charge N/A $5.53 $5.53
<br /> Pleasanton Water
<br /> Variable Charge 24 $2.68 $64.20
<br /> Zone 7 Water
<br /> Fixed (Meter) Charge N/A $18.48 $18.48
<br /> Zone 7 Water
<br /> Variable Charge 24 $3.66 $87.84
<br />TOTAL $176.05
<br /> PROPOSED PLEASANTON BILL - YEAR 1
<br /> Structure: 100% Zone 7 Fixed Cost Recovery,
<br /> Uniform Variable Rate, Single Family 5/8" Meter
<br />Charge CCF Rate Total
<br /> Pleasanton Water
<br /> Fixed Charge N/A $11.90 $11.90
<br /> Pleasanton Water
<br /> Variable Charge 24 $2.97 $71.28
<br /> Zone 7 Water
<br /> Fixed (Meter) Charge N/A $46.43 $46.43
<br /> Zone 7 Water
<br /> Variable Charge 24 $2.73 $65.52
<br />TOTAL $195.13
<br /> PROPOSED CONNECTION FEES
<br /> Set Charge Based on Meter Size for New System Connections
<br />Meter Size Incremental Fee Buy-In Fee Total Fee
<br />5/8"$2,825 $2,444 $5,269
<br />3/4"$4,109 $3,555 $7,664
<br />1"$7,063 $6,110 $13,173
<br />1 1/2"$12,841 $11,109 $23,950
<br />2"$25,682 $22,218 $47,900
<br />3"$64,205 $55,545 $119,750
<br />4"$160,511 $138,864 $299,375
<br />6"$321,023 $277,727 $598,750
<br />8"$449,432 $388,818 $838,250
<br />10"$706,250 $611,000 $1,317,250
<br />City of Pleasanton (Current)
<br />City of Pleasanton (Proposed)
<br />Livermore Municipal Water
<br />Dublin San Ramon Services District $198.31
<br />$208.06
<br />$195.13
<br />$176.05
<br />Calculate how the proposed rates will affect your bill using the City’s Water Bill Calculator at PleasantonWater.com/Rates.
<br />ESTIMATED YEAR 1 BI-MONTHLY INCREASE: $19.08
<br />This notice includes an update on Connection Fees for informational purposes only.
<br />These fees will not be considered as part of the Prop 218 public hearing. Instead,
<br />the fees will be considered and adopted separately by the City Council.
<br />The City calculates connection fees—one-time charges for new
<br />developments to connect to the water system—based on the cost of building new
<br />water capacity and the amount of growth that capacity can support.
<br />The City has proposed a hybrid approach to setting these fees. This method
<br />determines connection fees based on the available capacity in the existing system
<br />and the need to build additional capacity for future growth. It combines two
<br />components: a “buy-in” fee that recovers the cost of past infrastructure
<br />investments and an “incremental” fee that covers the cost of building new capacity.
<br />Together, these fees ensure new development pays its fair share without
<br />overburdening current customers.
<br />This table presents the proposed connection fees for each meter size using the
<br />hybrid method. These fees are subject to annual increases based on the
<br />Consumer Price Index (CPI).
<br />IMPACT OF RATE
<br />CHANGES ON
<br />YOUR WATER BILL
<br />Based on the proposed rates, 52% of bi-monthly
<br />single-family water bills are expected to increase
<br />by $20 to $40 in Year 1, which is equivalent to $10
<br />to $20 per month.
<br />Customers are urged to learn more about the
<br />City’s water conservation rebates and programs
<br />to save water and money. Learn more at
<br /> PleasantonWaterConservation.com
<br />UNDERSTANDING THE CITY’S RATE STRUCTURE
<br />The City of Pleasanton bills customers on a bi-monthly basis. Customers receive fixed and variable charges from the City and the Zone 7 Water Agency.
<br />Below is a summary of key components on your water bill, the existing rate structure, and proposed changes as part of this year’s water rate update.
<br />Fixed Charges are established fees for all customers, regardless of water usage. These charges are constant and are based on the size of your water meter.
<br />Customers have two fixed charges on their water bills: one from the City for water delivery and another from Zone 7 for supplying the water. Fixed charges
<br />recover costs associated with operations and maintenance, including staffing, utility billing, meter reading, water quality testing, conservation programs, and
<br />infrastructure repair and replacement.
<br />Consumption-based, or Variable, Charges change from bill to bill based on the water used, measured in hundred cubic feet (CCFs). Pleasanton has two
<br />variable charges: Zone 7 charges related to water supply purchases and City charges related to the City’s water delivery to customers. Consumption charges
<br />typically cover costs associated with delivering safe, reliable water, including the volume of water purchased, energy expenses to pump and move water
<br />through the system, and water treatment costs.
<br />Rate Structure - The City currently uses a tiered rate structure for its consumption-based variable charges for single-family customers. In this structure, the
<br />rate per unit of water increases as usage increases, i.e., the more you use, the more you pay. Tiered rates have historically been used to promote water
<br />conservation and maintain affordability for lower water users.
<br />PROPOSED CHANGES TO THE CITY’S RATE STRUCTURE
<br />As part of this year’s comprehensive water rate study, the City has proposed the following important changes as part of this year’s water rate update that
<br />directly affect the proposed rates for the next four years.
<br />Full Cost Recovery of Zone 7 Fixed Costs - The City’s current rate structure charges customers only 32% of Zone 7’s fixed costs, with the remaining
<br />expenses covered through the variable rate. This creates uncertainty and financial risk for the City, as water consumption depends on various factors,
<br />including annual rainfall, drought conditions, and changes in customer behavior. The proposed rates reflect the City billing 100% of Zone 7’s fixed charges to
<br />customers as a pass-through rate, thereby reducing the variable rate for Zone 7.
<br />Uniform Consumption-Based Variable Rates for All Customers - Over the past three years, several court cases in California have addressed the legality of
<br />tiered rate structures. As a result, the City has proposed eliminating the tiered rate structure and adopting a uniform rate structure for consumption-based
<br />rates applicable to all customer classes. This change creates greater consistency and reduces legal risk for the City.
<br />PROPOSED WATER RATES
<br />Below are the proposed rate adjustments for the City of Pleasanton water rates over the next four years. Once adopted, customers will be informed
<br />annually of rate changes at least 30 days before the effective date. The proposed rates reflect the City’s overall capital improvement and financial needs
<br />along with changes to its rate structure. These changes include implementing uniform, consumption-based variable charges for all customers and
<br />recovering 100% of Zone 7’s fixed costs as pass-through fixed charges to customers. Please note: most single-family residential customers have a 5/8" or
<br />3/4" meter, which will determine the applicable fixed service charge under the proposed rate structures.
<br />CITY POTABLE WATER RATES
<br />The table below outlines the City’s current and proposed fixed and
<br />variable consumption-based rates for potable water, also known as
<br />drinking water, for the next four years, beginning January 1, 2026.
<br />RECYCLED WATER RATES
<br />The City has developed a recycled water program to purchase and
<br />deliver recycled water for commercial irrigation customers in select
<br />areas. Recycled water benefits all water customers by conserving
<br />potable water for domestic use.
<br />With this program fully established, the table below outlines the
<br />proposed recycled water rates for recycled water customers only based
<br />on the costs of providing the recycled water, including debt service and
<br />operating costs.
<br />ZONE 7 WATER AGENCY PASS-THROUGH RATES
<br />The City purchases 100% of its potable water from the Zone 7 Water
<br />Agency, which charges the City both fixed and variable costs. Pursuant to
<br />Government Code §53756 (AB 3030 [2008]), these charges are pass-
<br />through costs collected by the City of Pleasanton to cover the purchase
<br />and delivery of wholesale water.
<br />The rates below are proposed based on an assumption of a 5% increase
<br />each year. However, these rates are subject to change based on the
<br />actual rates set by Zone 7.
<br />COMBINED POTABLE WATER RATES
<br />The table below compares the proposed combined water rates,
<br />including City and Zone 7 rates, with the current combined rates. This
<br />table illustrates the overall impact of the proposed rate changes.
<br />SEWER RATES ANNUAL CONSUMER PRICE INDEX INCREASE
<br />Your water bill includes bi-monthly sewer charges, which include a fee payable to the City of Pleasanton for maintaining and operating the local sewer
<br />collection system and a regional sewer service charge for the Dublin San Ramon Services District (DSRSD) or the City of Livermore for sewage treatment.
<br />Sewer rates are subject to an annual increase based on the Consumer Price Index (CPI), reflecting the percentage change indicated in the Annual
<br />Consumer Price Index (CPI) - All Urban Consumers for the San Francisco-Oakland-Hayward, CA index, available as of March 31 each year. At the public
<br />hearing on October 7, 2025, the City will also consider an annual CPI increase for sewer rates. If approved, sewer rates will increase by 2.7% effective
<br />January 1, 2026.
<br />Later this year, the City will conduct a sewer rate study to determine rate adjustments to meet the City’s sewer collection system needs. Based on these
<br />findings, the City is expected to adopt and implement new sewer rates by the summer of 2026.
<br />IMPORTANT UPDATE REGARDING CONNECTION FEES
<br />BI-MONTHLY WATER BILL COMPARISON
<br />The chart below compares the City’s current and proposed bi-monthly
<br />water bills for single-family customers to those of nearby agencies that also
<br />purchase imported water from Zone 7. The proposed bill amounts are
<br />based on the average water usage of 24 CCFs every two months.
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