Why use a tiered rate structure?

A tiered rate structure encourages water conservation by rewarding efficient use of water and reducing peak demands. Based on the 2017 to 2018 winter quarter average water use data, the City’s lowest tier (0 to 10,000 gallons per month) provides sufficient water to cover water use for basic and essential needs for 97% of Melissa’s residential water customers. The first and second tiers (up to 15,000 gallons per month) provide sufficient water to cover water use for basic and essential needs for 99.5% of Melissa’s residential water customers. Water usage in excess of basic and essential needs is non-essential and non-efficient discretionary use of water such as irrigation, swimming pool maintenance, car washing, etc. The discretionary use is usually seen in the summer months and drives water facility storage, distribution, and pumping facility sizing to meet peak summer demands. 

Therefore, the discretionary high water uses to pay a higher tier to offset the increased costs of sizing facilities to meet peak, discretionary demands.

Show All Answers

1. What type of water meter does the city use?
2. How does my meter work?
3. How can I check for a leak?
4. How can I test my meter for accuracy?
5. I've conducted my own bucket test and I still don't believe my meter is working properly. What are my options?
6. Do mechanical meters slow down or speed up over a lifespan?
7. What is Advanced Metering Infrastructure (AMI)?
8. How does the Advanced Metering Infrastructure (AMI) system work with my meter?
9. Is the Meter Transmission Unit (MTU) a meter?
10. How can I test my Meter Transmission Unit (MTU) for accuracy?
11. If the City had irrigation-specific water meters, would it help my sewer bill?
12. Will the City consider extending the leak adjustment application acceptance window to longer than within 30 days of the leak repair?
13. How are water rates established each year through the Water Rate Study?
14. What is a "take or pay" contract?
15. Why use a tiered rate structure?