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City of Pleasanton <br />2025 Water Rate Study <br /> <br />Water Resources Economics <br />3 <br />3. Rate Design: The existing rate structure is evaluated, and potential changes are identified. A <br />multi-year proposed rate schedule is then calculated directly from the results of the financial <br />plan and cost-of-service analysis. <br />4. Rate Study Documentation: A rate study report is developed to document the proposed rate <br />development process. This provides transparency and enhances legal defensibility in light of <br />Proposition 218 requirements. This document serves as the report for this rate study. <br /> <br />1.5 ADDITIONAL INFORMATION AND DISCLAIMERS <br />This report summarizes the data, analyses, processes, and results of the City’s water rate study. Some <br />important information to keep in mind when reading the report includes the following: <br />• All study projections are based on the best available data as of June 2025. <br />• All table values are rounded to the nearest digit shown unless stated otherwise. However, all <br />calculations are based on precise values. Attempting to manually recreate the calculations <br />described in this report from the values displayed in tables may therefore produce slightly <br />different results. <br />• All current and proposed rates and charges in this report are shown on a bi-monthly basis. <br /> <br />1.6 CURRENT WATER RATES <br />The City’s current water rates include bi-monthly fixed meter charges based on meter sizes and variable <br />charges based on units of water in hundred cubic feet (ccf). The bi-monthly fixed charge is a combination <br />of City fixed charges and Zone 7 fixed charges. <br /> <br />For variable charges, Single Family Residential customers have a four-tiered consumption based variable <br />charge; Multi-Family, Commercial/Industrial, Potable Irrigation, and Recycled Irrigation customers have <br />a uniform variable charge. For Single Family, Multi-Family, Commercial/Industrial, and Potable Irrigation <br />customers, the total variable charge includes a Pleasanton distribution charge component and a Zone 7 <br />water supply charge component. The Zone 7 water supply charge component is subject to change year to <br />year based on a pass-through of actual Zone 7 charges to the City for water supply. For Single Family Tier <br />4, Multi-Family, Commercial/Industrial, and Potable Irrigation customers, the total variable charge also <br />includes a recycled water surcharge to help fund the City’s recycled water irrigation program. For Single <br />Family Tier 4, the total variable charge also includes a capacity extension surcharge to repay an internal <br />loan used to fund system improvements to accommodate increased water demand. For Recycled <br />Irrigation customers, the total variable charge is based on the City’s own distribution and supply charges. <br /> <br />The City also has a discount program for eligible Senior and Low-Income customers. Eligible Senior <br />customers receive 20% off City bi-monthly fixed charges and combined variable charges and eligible <br />Low-Income customers receive 30% off City bi-monthly fixed charges and combined variable charges. <br />The discount is applied each billing period, only to eligible Low-Income and Senior customers who use <br />consume 30 ccf of water or less. <br /> <br />Table 1-1, Table 1-2 , and Table 1-3 show the current bi-monthly fixed charges, combined variable <br />charges, and discount programs, respectively.