Three components make up the YLWD water rate:

1. Commodity Rate:

The price per unit of water based on the amount of water used.

2. Fixed Monthly Base (Meter) Charge:

YLWD has fixed costs for the operations, maintenance, repair, and rehabilitation of the water system irrespective of how much water is used by the customer.

3. Fixed Annual Capital Finance Charge

These fixed charges help fund major infrastructure projects to build, maintain, and upgrade the District’s water facilities. They cover annual principal and interest payments on existing loans or bonds and partially fund ongoing capital improvement projects. The charge varies based on the customer’s meter-size connection and is collected on the property owner’s annual property tax bill.

Residential customers pay a fixed flat charge for sewer service. Commercial customers pay both a flat rate as well as a variable volumetric charge based on the estimated amount of water returned to the sewer. There is no sewer rate charge for landscaping customers because sewer runoff is captured by the storm drain system. The sewer maintenance charge covers the operation and maintenance cost of the sewer system, which includes the repair, rehabilitation, and eventual replacement of the sewer pipes and equipment. The sewer commercial usage rate has been updated to be charged for usage above 6 centum cubic feet (CCF), instead of 7 CCF, due to new water consumption trends and standards for indoor water usage. 1 CCF = 100 cubic feet, or 748 gallons.

The District purchases water from wholesale provider, Municipal Water District of Orange County (MWDOC), and power from energy provider, Southern California Edison. The District also pays Orange County Water District (OCWD) fees and charges to pump groundwater. These providers may increase the rates they charge the District over time. When developing its financial plan, the District projected that wholesale water, power, and pumping costs would increase annually. To ensure there are sufficient funds to continue providing reliable water service, the District is proposing to pass through these costs when increases occur beyond what was originally projected.

If approved, the Board of Directors may implement a pass-through adjustment to reflect increased costs above projections during the five-year rate period beginning July 1, 2026, and through June 30, 2031. If this occurs, the rate adjustment will not require a public hearing but the District will provide its customers with at least 30 days notice of the adjustment. Provided, however, that (1) any increase in the commodity rates described above as a result of any pass-through adjustment shall not exceed ten percent (10%) of the commodity rate per year and (2) in no event shall such rates be increased more than the cost of providing water service.

Certain YLWD connections require a fixed monthly Fire Protection Charge that was a condition of extending or initiating water service. YLWD established charges for the monthly Fire Protection Charge based on the fire line diameter and the charges are calculated to recover the cost of providing water to such properties for private fire protection.

YLWD strives to provide efficient and cost-effective water and sewer services while aligning its rates with the cost of delivering those services. Some of those costs include:

1. ENERGY

Statewide, about 12% of California’s total energy consumption goes toward water-related uses. The amount of power needed to move, treat, and purify drinking water before it gets to your tap is a significant percentage of the cost of service.

2. GROUNDWATER PRODUCTION

Approximately 85% of YLWD’s water supply comes from local groundwater in the Orange County Groundwater Basin, managed by the Orange County Water District (OCWD). Groundwater is pumped through YLWD wells and treated at the J. Wayne Miller, Ph.D. Water Treatment Plant before being delivered to our customers. YLWD maximizes this allocation because groundwater is more cost-effective than imported water.

3. PURCHASING IMPORTED WATER 

Approximately 15% of YLWD’s water supply is imported from the Metropolitan Water District of Southern California. Imported water costs approximately 115% more than local groundwater.

4. SEWER COLLECTION

Wastewater must be safely transported to the Orange County Sanitation District for collection, treatment, and disposal. YLWD maintains its sewer pipelines to prevent spills and overflows, which can cause environmental damage and result in significant regulatory penalties.

5. CAPITAL INFRASTRUCTURE IMPROVEMENTS

YLWD water and wastewater systems are aging and many of the 56,000 assets need repair or replacement. The District carefully balances the effort to minimize the cost of delivering high-quality, reliable water and sewer service with the critical need to reinvest in infrastructure.

6. INFRASTRUCTURE MAINTENANCE

Regular maintenance and upkeep of the District’s water and wastewater system is required to maximize its lifespan and reduces the likelihood of costly emergency repairs.

7. LABOR AND PERSONNEL

YLWD is supported by a dedicated team of water professionals who operate, maintain, and monitor the water and sewer systems 24 hours a day to ensure safe, reliable service for homes and businesses throughout our service area.