1 WATER RULES & REGULATIONS
2 PRELIMINARY STATEMENT
1. Rate Applicability and Rules: The application, interpretation, and administration of the provisions herein are subject to such rules and regulations as may be provided and prescribed by the General Manager of Utilities of the City of Azusa, and as approved by the City Council of the City of Azusa.
2. Definition of Customer: The term "customer" is hereby defined as meaning a person, private or public corporation, co-partnership, unincorporated association, the United States, the State of California, any County or any Governmental Agency who makes written application and is entitled to service under the Utility's rules. A customer may also be a party with whom the City of Azusa is doing business with or without a billing relationship or who is receiving benefit of utility service under another party's name.
3. Contracts: The City may require a contract as a condition ofservice.
4. The General Manager of Utilities may establish and enforce charges for furnishing water to any installation of a character not adequately provided for by these rules and rates, provided that such charges shall be consistent with the rates and charges prescribed herein.
5. Official Time: Azusa Light & Water recognizes as its official referenced time standard for all service metering and transactional activities the time as recorded by the United States Department of Commerce National Institute of Standards and Technology (NIST) and the U.S. Naval Observatory (USNO).
Updated: 08/01/2026 Water Rate Schedule- 1
WATER RATE SCHEDULE
(Approved by Joint Resolution No. 2026-CC47)
The following schedule of rates is fixed and established as the rates to be collected by Azusa Light & Water for supplying water to its customers within the certificated service territories of the City of Azusa:
A. METER SERVICE CHARGE:
The basic monthly meter service charge for water supplied to domestic, commercial, industrial, and municipal customers of Azusa Light & Water shall be as follows:
Meter
Size August 1,
2026
July 1,
2027
July 1,
2028
July 1,
2029
July 1,
2030
5/8"-3/4" 22.00 25.50 29.50 32.50 36.00
1" 36.25 43.00 50.00 52.00 54.00
1 1/2" 72.00 80.00 87.00 90.00 92.00
2" 108.00 118.00 130.00 133.00 136.00
3" 211.00 229.00 250.00 255.00 261.00
4" 338.00 366.00 400.00 408.00 418.00
6" 657.00 757.00 875.00 900.00 940.00
8" 1,100.00 1,400.00 1,800.00 1,900.00 2,040.00
10" 2,473.80 2,473.80 2,473.80 2,473.80 2,473.80
12" 4,178.11 4,178.11 4,317.04 4,317.04 4,628.60
Minimum Charge: If a customer has no consumption, the minimum charge shall be the monthly meter service charge.
Updated: 08/01/2026 Water Rate Schedule- 2
B. BASELINE COMMODITY CHARGE:
The baseline commodity charge shall be in effect during times when no drought is declared pursuant to Rule No. 21. The “baseline” assumes that sales or consumption by all customers is approximately 20% below sales during calendar year 2013. Sales or consumption is measured in increments of cubic feet. One cubic foot is 7.48 gallons of water. Each unit of water is billed as 100 cubic feet or 748 gallons. One hundred cubic feet is commonly referred to as CCF. Commodity rates are set based on the cost to provide service for the respective meter size, and the tiered rates below shall be used to allocate costs in proportion to consumption for the respective meter sizes.
Meter Size
5/8" - 3/4"
1"
1 1/2"
2"
3"
4"
6"
8”
10”
12”
Golf Course
Tier CCF August 1,
2026
July 1, 2027 July 1, 2028 July 1, 2029 July 1, 2030
1 0-4 2.92 3.43 4.01 4.13 4.22
2 5-15 4.24 4.97 5.82 5.99 6.12
3 > 15 4.82 5.66 6.62 6.81 6.96
1 0-7 2.92 3.43 4.01 4.13 4.22
2 8-25 4.24 4.97 5.82 5.99 6.12
3 > 25 4.82 5.66 6.62 6.81 6.96
1 0-15 2.92 3.43 4.01 4.13 4.22
2 16-50 4.24 4.97 5.82 5.99 6.12
3 > 50 4.82 5.66 6.62 6.81 6.96
1 0-23 2.92 3.43 4.01 4.13 4.22
2 24-80 4.24 4.97 5.82 5.99 6.12
3 > 80 4.82 5.66 6.62 6.81 6.96
1 0-47 2.92 3.43 4.01 4.13 4.22
2 48-159 4.24 4.97 5.82 5.99 6.12
3 > 159 4.82 5.66 6.62 6.81 6.96
1 0-73 2.92 3.43 4.01 4.13 4.22
2 74-249 4.24 4.97 5.82 5.99 6.12
3 > 249 4.82 5.66 6.62 6.81 6.96
1 0-145 2.92 3.43 4.01 4.13 4.22
2 146-498 4.24 4.97 5.82 5.99 6.12
3 > 498 4.82 5.66 6.62 6.81 6.96
1 0-233 2.92 3.43 4.01 4.13 4.22
2 234-797 4.24 4.97 5.82 5.99 6.12
3 > 797 4.82 5.66 6.62 6.81 6.96
1 0-610 2.92 3.43 4.01 4.13 4.22
2 611-2,092 4.24 4.97 5.82 5.99 6.12
3 > 2,092 4.82 5.66 6.62 6.81 6.96
1 0-770 4.07 4.07 4.21 4.21 4.51
2 771-2,640 4.07 4.07 4.21 4.21 4.51
3 > 2,640 4.07 4.07 4.21 4.21 4.51
- - Uniform Golf Course billed on Tiered Usage Charge per CCF above Updated: 08/01/2026 Water Rate Schedule- 3
C. COMMODITY DROUGHT RATE SCHEDULE
From time to time the water utility may be required to encourage its customers to conserve water.
Conservation activities can significantly reduce the water utility’s revenue, and in order to meet the water utility’s revenue requirements the following commodity drought rate schedule shall be used. If the water utility declares a water shortage in compliance with Rule 21, the following Commodity Drought Rate Schedule shall be effective and shall continue in effect until the water shortage declaration has ended or is no longer in effect:
Commodity Charges Tiers August 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 July 1, 2030 1 3.13 3.66 4.28 4.40 4.50
Drought Phase I
Level of Conservation
-5% from Baseline
2 4.54 5.31 6.20 6.38 6.53
3 5.16 6.04 7.06 7.27 7.43
12” 4.36 4.35 4.49 4.49 4.81
Drought Phase II
Level of Conservation
-10% from Baseline
1 3.28 3.85 4.50 4.63 4.73
2 4.76 5.58 6.52 6.71 6.86
3 5.42 6.35 7.42 7.64 7.80
12” 4.57 4.57 4.71 4.71 5.05
Drought Phase III
Level of Conservation
-15% from Baseline
1 3.46 4.05 4.74 4.88 4.99
2 5.01 5.88 6.87 7.07 7.23
3 5.70 6.69 7.82 8.05 8.23
12” 4.82 4.81 4.97 4.97 5.33
Drought Phase IV
Level of Conservation
-20% from Baseline
1 3.65 4.28 5.01 5.16 5.27
2 5.30 6.21 7.27 7.48 7.65
3 6.03 7.07 8.27 8.51 8.70
12” 5.09 5.09 5.26 5.26 5.64
Additionally, if CCF sales fall below currently expected levels, ALW remains responsible for meeting revenue requirements. Drought rates are developed for use when conservation required by the State increases or if the Utility Board declares more severe drought stages, or for any other reason, ALW has a severe decline in water usage. The purpose of the drought rate is to ensure that ALW can meet its financial obligations under such conditions. If ALW determines that Water Sales are 5, 10, 15, or 20% below the Baseline Sales, then ALW (ALW General Manager) may declare the corresponding Drought Phase effective after providing 30 days' prior written notice to all customers, and Commodity Charges will be adjusted accordingly.
The Drought Rate analysis accounts for the reduction in actual water usage. To conduct the analysis, the projected revenue shortfall per unit was quantified, with adjustments for reduced pumping and treatment expense, under each of the four stages of conservation.
The drought rates schedule applies to Tier 1, Tier 2, and Tier 3 usage, covering all retail customers, fire protection usage, and the golf course.
Stage Annual Usage (CCF) Conservation Level
Baseline 5,176,596
I 4,917,766 -5%
II 4,658,937 -10%
III 4,400,107 -15%
IV 4,141,277 -20%
Updated: 08/01/2026 Water Rate Schedule- 4
D. RESIDENTIAL SERVICE WITH FIRE SPRINKLER SYSTEM:
The following three rate components shall be applied to residential properties that are required to have fire sprinkler systems, where such properties: (1) have lot sizes less than one-quarter of an acre (10,890 square feet); and (2) have an actual meter service that is larger than 1”.
1. Meter Charge (same as 1” meter charge) See Section A of this Schedule
2. Commodity Charge: See Section B of this Water Rate Schedule
3. Commodity Drought Charge: See Section C of this Water Rate Schedule (when in effect)
4. Fire Service Charge: See section E of this Water Date Schedule Minimum Charge: If a customer has no water consumption, the minimum charge shall be the Meter Charge, plus the Fire Service Charge.
Updated: 08/01/2026 Water Rate Schedule- 5
E. FIRE SERVICE CHARGE:
Customers with dedicated separate fire service meters shall be subject to the following monthly charges:
Meter Size August 1,
2026
July 1,
2027
July 1,
2028
July 1,
2029
July 1,
2030
1" 6.20 7.20 8.20 9.20 10.20
2" 15.00 17.00 18.00 19.00 20.00
3" 32.00 36.00 40.00 42.00 43.00
4" 62.00 70.00 79.00 82.00 85.00
6" 140.00 170.00 205.00 215.00 225.00
8" 260.00 331.20 413.60 437.60 462.40
10" 415.00 556.00 719.00 766.00 815.00
12” 575.00 636.00 822.00 876.00 932.00
Commodity charges as set forth in Section B shall apply to all consumption of water used for fire suppression.
Fire service connections are provided for fire protection only. If, during any month, a fire service meter registers usage for any purpose other than for firefighting or fire system testing, a penalty charge (see below) shall be assessed, in addition to the Commodity Charge for the actual amount of water used. When a penalty charge is issued, a fire service customer shall immediately determine the cause of the usage and remedy the usage, whether it is caused by a faulty device or an illegal tap. If a fire service customer repeatedly registers usage on a fire service for purposes other than emergency firefighting or fire system testing, the customer, upon written notice by the General Manager of Utilities, may be disconnected from service for violation of the intended use of a fire service connection.
July 1,
2022
July 1,
2023
November 1,
2023
July 1,
2024
July 1,
2025
$110 $110 $110 $110 $110
Updated: 08/01/2026 Water Rate Schedule- 6
F. LIFELINE RATE:
Upon written application to Azusa Light & Water, a water customer who meets the following standards is eligible for a $2.20 discount from the basic monthly meter service charge.
1. The customer must be either:
a. 62 years of age or older; or
b. Disabled within the definition of 20 C.F.R. 404.1505 and presently is receiving disability Social Security benefits.
2. The customer must be a resident of a single-family dwelling unit with a water meter no larger than 3/4".
3. The customer shall have been a water customer at the service address for at least the previous 12 months prior to the application for the lifeline rate.
4. The customer's household income is at or below 60% of the Los Angeles County median income level.
5. Low-income customers who qualify for the lifeline rate shall re-apply every 12 months.
G. SPECIAL ZONE RATE:
The City of Azusa Light & Water has defined a special distribution zone rate to recover costs identified with the service associated with that specifically designated service area.
For water supplied to this defined area, the commodity charges shall be double the above applicable commodity rates. The area was specifically designated through an agreement between the City of Irwindale and the City of Azusa, wherein, the City of Irwindale requested the City of Azusa extend its water utility service into the City of Irwindale in order to provide water service to those special customers in the City of Irwindale. This rate applies to water customers with accounts specially coded for that purpose.
Updated: 08/01/2026 Water Rate Schedule- 7
H. REPLACEMENT WATER COST ADJUSTMENT FACTOR(RWCAF):
The Replacement Water Cost Adjustment Factor has been established to recover the costs of imported water required to fulfill the water system’s requirements under the judgment of the adjudication of the Main San Gabriel Basin. Each year in May, the Main San Gabriel Basin Watermaster recommends to the Superior Court of Los Angeles County the adoption of a basin safe yield. Said safe yield fluctuates annually from a historic low of 140,000 acre feet of allowable extraction to a historic high of 230,000 acre feet of extraction. This variable results in fluctuations of purchased imported water requirements for the City of Azusa. When the safe yield is high, the RWCAF is reduced, and when the safe yield is low the RWCAF is set higher.
Azusa Light & Water shall determine the RWCAF pursuant to the following methodology prior to the beginning of each year for the City of Azusa's water system. It shall be applied to all water bills beginning the first billing cycle of the new fiscal year.
1. Determine Azusa's Integrated Production Rights (R) for the following fiscal year based on the Safe Yield declared by the Main San Gabriel Basin Watermaster in the spring of each year.
2. Project Azusa's total water production (P) based on estimated sales (S) in units (CCF) of water, for the following year.
3. Derive the amount of Replacement Water (W) required by subtracting (R) from (P).
4. Derive costs ($) associated with (W) from the Main San Gabriel Basin Watermaster which include replacement water costs from the responsible agencies, administrative charges and in lieu fees.
5. Derive RWCAF by dividing ($) by (S).
6. If the RWCAF is less than $0.01/CCF, then apply $0.01/CCF commencing in July until the month ($) is attained, than discontinue the charge.
Nothing in this section is meant to preclude the General Manager of Utilities from practicing sound ground water management activities. Each year the RWCAF is set independent from cyclic storage and conjunctive use of ground water which is managed separately, and for the benefit of the public utility.
ALW uses a water cost adjustment factor to capture increases in the cost of purchasing wholesale water such as:
• Resource Development Assessments (“RDA”) Water Purchases for the Main San Gabriel Basin Watermaster (“Watermaster”), Upper San Gabriel Valley Municipal Water District (“USGVMWD”), San Gabriel Valley Municipal Water District (“SGVMWD”) • Main San Gabriel Basin Watermaster Assessments
• Supplemental water purchases
• Replacement water obligation for Watermaster, SGVMWD, USGVMWD • Cyclic Storage Water Purchases
Updated: 08/01/2026 Water Rate Schedule- 8
• Reverse Cyclic Storage Water Purchases
The RWCAF is designed to capture costs imposed on ALW through Resource Development Assessments (RDA) for Water Master, USGVMWD and SGVMWD, supplemental water purchases, replacement water obligations, and cyclic storage water purchases. When ALW extracts more water from the basin than its adjudicated share, ALW incurs additional costs to replenish the aquifer. In addition, to reduce the impact of price increases, ALW may purchase additional imported water when available and store it in ALW’s cyclic storage for future use. ALW may also implement reverse cyclic storage, purchase water from the State Water Project at current prices, and defer delivery for the future.
The proposed rates effective 8/1/2026 include the estimated RWCAF costs for the four categories referenced above through FY2026, which are allocated to water rates at approximately $0.842 per CCF (including $0.618 from FY2025 and $0.22 from FY2026). The proposed rates, effective thereafter and each July 1 from 2027 through 2030, will be subject to an additional passthrough of the City’s RWCAF costs, which will be proportionately allocated in accordance with the Rate Study and passed through to customers.
Resolutions - 12
Joint Resolution No. 2026-CC47
Effective: August 1, 2026
A Joint Resolution of the City of Azusa and the Utility Board of the City of Azusa, California, adopting water rates, including the commodity drought rate schedule and the replacement water cost adjustment factor, effective August 1, 2026, with annual adjustments each July 1 through July 1, 2030.