Recycled Water Rates and Charges

Recycled water, also known as “reclaimed” water, is used as a conservation measure to reduce potable drinking water demand. Recycled water is non-potable, treated wastewater used for landscape irrigation including but not limited to: park landscape areas, school landscape areas, roadway medians and parkways, and golf course landscaping. The City purchases recycled water pursuant to an agreement with the Orange County Water District (OCWD).

In 2017, the City entered into an agreement with OCWD for the distribution and sale of Green Acres Project water. The agreement stipulates the costs associated with the City buying recycled water from OCWD, project water quality, and rules and regulations associated with recycled water operations.

City recycled customers’ bills cover the following costs and services:

• Rates to generate sufficient revenue to fund the City’s recycled water system’s operations and maintenance expense.
• The cost of purchasing recycled water from Orange County Water District (OCWD).
• Capital replacement expense related to pump stations and meters.

City recycled customers’ bills may contain the following charges:

Recycled Use Charge (Variable): Shown on the bill as “Recycled Use HCF”, this charge is geared primarily towards recovering the costs associated with purchasing recycled water from OCWD (Orange County Water District). This charge is based on the amount of recycled water used and is calculated by multiplying the number of hundred cubic feet (HCF) units of recycled water used by the per unit rate.

Pump Station Charge (Variable): A monthly pump station charge for each customer receiving water by means of a pump station. The pump station charge recaptures the cost to operate, repair, maintain, and replace the pump stations that may be necessary to provide recycled water.

Service Charge (Fixed): The fixed water service charge is designed to recapture the City’s costs to operate and maintain the recycled water system, including required capital infrastructure improvements but excluding pump station maintenance, repairs, and improvements. The charge is calculated based on the water meter size.

Additional Info:

Proposition 218

In November 1996, California voters approved Proposition 218.  As a result, California agencies must comply with its requirements in setting utility rates.  One provision requires that a noticed public hearing on utility rates be held and that rates not be increased if a majority of affected utility customers protest the increased rates in writing. The City conducted a public hearing on August 24, 2014 pertaining to recycled water rates whereby in the absence of a majority protests, the City Council approved the rates.

Questions?

Contact Us: Please call 949-644-3011 or e-mail utilitieshelp@newportbeachca.gov for questions regarding recycled water rates.