Revenue from higher tier provides over-allocation water use funds for tailored programs and rebates to encourage long-term improvements in water use efficiency and to support IRWD’s urban runoff source control and treatment programs. The rate structure is designed to derive sufficient revenues from the over-allocation use tiers to completely fund these programs.
C. Price Signal to Reduce Water Waste
The rate structure not only signals customers when they are over-using water but also signals IRWD as to which customers need the greatest degree of attention. This two-way communication helps IRWD focus its financial and staff resources efficiently. Customer service is also emphasized. For example, billing adjustments are provided for customers that have over- allocation use related to leaks if the customer shows evidence of the leak repair. In addition, customers that have habitual over-allocation use are contacted by IRWD staff and offered leak detection services, as well as water use efficiency education and assistance.
D. Rate Structure Results
Since the introduction of IRWD’s allocation-based rate structure in 1991, the following has been observed: • For landscape accounts, water consumption dropped 31.5% solely attributable to the rate structure (Kennedy/Jenks 2008). Additional programs and incentives resulted in a sustained reduction of 59%, from 4.4 acre-feet per acre in 1991 to 1.8 acre-feet per acre in 2025. • As a result of the rate structure and on-going water efficiency programs, residential per capita use has dropped 44% from 118 gallons per capita per day in 1991 to 66 gallons per capita per day in 2025.
• The reductions in per capita and landscape water use have reduced IRWD’s dependence on expensive imported water.
• As a result of the strong economic signal provided with the rate structure and proactive customer outreach, fewer than 6.4% of residential customers currently pay the highest tier charges in any given month. • Both residential and non-residential customers give IRWD high marks in customer satisfaction, with customer service rating of “excellent” from 87.1% of surveyed customers. J.D. Power awarded IRWD its top honor for Customer Satisfaction, deeming it the best midsize water utility in the Western United States based on independent customer surveys for four straight years (2022-2025). • Secondary benefits include reductions in urban runoff flows, energy savings and reduced green-house gas (GHG) emissions.
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IRWD – 2025 Urban Water Management Plan
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