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Notice of proposed changes to single-family residential water rates for LVVWD customers

As poor hydrology and climate change continue to plague the Colorado River Basin, additional and increased water conservation efforts are required to help protect critical water levels at Lake Mead, the Southern Nevada region’s primary water resource.

The Las Vegas Valley Water District (LVVWD) is proposing changes to its Service Rules to further incentivize water conservation for single-family residential properties throughout the LVVWD service area. The proposed changes include an Excessive Use Charge, as well as equalizing the tiers in the existing water rate structure—each of which are designed to reduce consumptive water use for single-family residential customers.

Tier equalization

LVVWD's tiered water rate structure is an effective conservation tool in that water becomes more expensive as more of it is used. After a certain amount of consumption, depending on meter size, a single-family residential customer will reach a higher tier where the cost per 1,000 gallons increases. Because of the meter-size classification, however, customers with larger meters are allowed more water in each usage tier, enabling them to use a higher volume of water before seeing their rates increase than customers with smaller meters. This results in some customers paying less money per thousand gallons even though they use more water. The proposal is therefore to eliminate the meter-size classification and equalize the tiers among all single-family residential customers.

By equalizing the tiers, all single-family residential customers, regardless of meter size, will receive the same volume of water in each tier as customers with 5/8-inch meters, ensuring that every single-family residential customer pays the same amount for the water they use. As a result, all single-family residential water meters, regardless of size, would be billed for water according to the following tier structure:

Proposed Tiered Water Rates and Thresholds – Single-Family Residential
Tier Threshold Cost per 1,000 gallons
Daily Usage (gallons)

Monthly Equivalent (30 days)

1

First 167

5,000 gallons

$1.40

2

Next 167

5,000 gallons

$2.50

3

Next 333

10,000 gallons

$3.71
4

Over 667

20,000 gallons

$5.51

Excessive use charge

To reduce unnecessarily high water use among single-family residential water users, an Excessive Use Charge is being proposed. The charge will be assessed to single-family residential customers whose water usage exceeds an established monthly water use threshold that varies by season. The proposed thresholds are as follows:

Proposed Thresholds
Season Winter
Nov 1-Feb 28
Spring
Mar 1 – Apr 30
Summer
May 1 – Aug 31
Fall
Sep. 1 – Oct. 31

Excessive Use Threshold

14,000 gallons 16,000 gallons 28,000 gallon 26,000 gallons

If approved, any single-family residential customer that exceeds the excessive use threshold in any given month will be assessed a surcharge of $9 per 1,000 gallons consumed in excess of that threshold volume, which will be assessed in addition to existing normal water rates.

Tentative schedule

Sept. 6, 2022 - LVVWD Board considers Business Impact Statement
Oct. 4, 2022 - LVVWD Board holds a public hearing on proposed rates
Jan. 1, 2023 - New rates are implemented, if approved by LVVWD Board

Examples of Single Family Residential Rates with Tier Equalization and Excessive Use Charge
  January Bill April Bill July Bill September Bill

5/8" meter
Average water use
(8,600 gal/month)

$48.48 $48.48 $48.48

$48.48

5/8" meter
High water use
(38,000 gal/month)

$429.58 $411.54 $303.27

$321.31

1" meter
Average water use
(26,900 gal/month)

$290.18 $272.14 $173.79

$181.91

1" meter
High water use
(46,000 gal/month)

$583.72 $565.68 $457.41

$475.45