Water Commodity Delivery Charge Pass-Through Adjustment Calculation Calendar Year 2026
Table 1: Projected Imported Water and Replenishment Assessment Costs 2023 Estimated
Water Rate Calendar
Description Study (1) Year 2026 Notes
1 Water Supply
2 Supply Allocation, AF 19,773 20,984 2
3 Percent Groundwater 85% 85% 2
4 Percent Imported 15% 15% 2
5 Groundwater Production, AF 16,807 17,836
6 Imported Water, AF 2,966 3,148
7 8 Wholesale Water Supply Unit Costs
9 MWD Imported Water Charge, $/AF $1,209.00 $1,528.00 3 10 Replenishment Assessment, $/AF $624.00 $711.00 4
11 12 Imported Water Costs
13 Calculated MWD Imported Water Charge, $ $3,585,842 $4,809,533 14 MWD Readiness to Serve Charge 541,486 456,516 5
15 MWD Capacity Charge 207,834 237,151 6
16 MWDOC Connection Charge 492,275 519,979 7
17 MWDOC Choice Programs 28,734 74,857 8
19 Subtotal, Imported Water Costs $4,856,171 $6,098,036 20 21 Replenishment Assessment/Basin Equity Assessment Costs $10,487,623 $12,681,680 Table 1 Notes:
(1) Source of 2023 Water Rate Study data: 2023 Water Rate Study, Table 2-3. (2) CY 2026 estimated water demands and groundwater production projections are from the City's FY 25/26 projections, (3) Source: Metropolitan Water District of Orange County Ordinance 2157 Section 1(A), adopted 4/16/2025. (4) Source: OCWD Budget for FY 25/26 transmittal letter to the OCWD Board dated 4/16/25, page 2.
The Replenishment Assessment value effective 7/1/26 is not known, so the FY 25/26 value is used for the entirety of Calendar Year 2026 in this Commodity Delivery Charge Adjustment calculation. (5) Source: Metropolitan Water District of Orange County Ordinance 2157 Exhibit A, adopted 4/16/2025.
The Readiness to Serve Charge in this calculation is the monthly charge effective between January through June 2026.
The Readiness to Serve Charge for July through December 2026 is not yet known, so the charge effective between January and June 2026 is used for the entire Calendar Year 2026 period. (6) Source: Metropolitan Water District of Orange County Ordinance 2157 Exhibit B, adopted 4/16/2025. (7) Source: Metropolitan Water District of Orange County (MWDOC) Ordinance 2157 Section 4, adopted 4/16/2025.
MWDOC Ordinance 2147 specifies a Connection Charge of $15.25 for Calendar Year 2026, which is multiplied by the number of connections to produce the MWD Connection Charge in the table above. The 2023 Water Rate Study and this Commodity Delivery Charge Adjustment calculation are based on 34,097 connections served by the City's water system. Rate Study calculations are based on a Connection Charge of $14.4375 per customer. (8) Source: Metropolitan Water District of Orange County Ordinance 2157 Exhibit C, adopted 4/16/2025.
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10202025 Revised Draft Commodity Delivery Charge Adjustment Staff Report Appendix
Copyright 2025 All Rights Reserved
October 20, 2025
Water Commodity Delivery Charge Pass-Through Adjustment Calculation Calendar Year 2026
Table 2: Calculation of 2026 Commodity Delivery Charge Pass-Through Adjustment (Effective 1/1/26) 2023 Estimated
Water Rate Calendar
DESCRIPTION Study Year 2026
1 Total AF/Year Groundwater 16,807 17,836
2 Total AF/Year Imported 2,966 3,148
3 4 Groundwater: Replenishment Assessment and Basin Equity Assessment Costs$10,487,623 $12,681,680 5 Imported Water Costs 4,856,171 6,098,036
6 Total Wholesale Water Charges $15,343,794 $18,779,716 7 8 Wholesale Water Charges per hundred cubic feet (CCF) 9 Wholesale Water Charges $15,343,794 $18,779,716
10 Water Supply, Acre-Feet 19,773 20,984
11 Wholesale Water Charges, $/acre-foot $776.00 $894.95 12 Wholesale Water Charges, $/CCF $1.7108 $1.9730
13 14 Change in Wholesale Water Charges from 2023 Water Rate Study, $/CCF CY 2026 15 $/CCF $0.2622
16 $/CCF, rounded down to nearest $0.01 $0.26
17 18 Water Commodity Delivery Charge Pass-Through Adjustment, $/CCF:
19 Included in 2023 Water Rate Study $0.00
20 CY 2025 Adjustment Adopted on 11/26/24 and Effective on 1/1/25 $0.20 21 Proposed Additional CY 2026 Adjustment $0.06
22 Total Water Commodity Delivery Charge Pass-Through Adjustment $0.26 23 24
25 Water Commodity Delivery Charge, $CCF, Effective 1/1/26 CY 2026 26 Tier 1
27 Unadjusted (Ordinance 2948) $3.83
28 Pass-Through Adjustment $0.26
29 Adjusted $4.09
30 Tier 2
31 Unadjusted (Ordinance 2948) $5.84
32 Pass-Through Adjustment $0.26
33 Adjusted $6.10
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10202025 Revised Draft Commodity Delivery Charge Adjustment Staff Report Appendix
Copyright 2025 All Rights Reserved
October 20, 2025