AB2180 allows local agencies to set tiered water rates based on proportional costs.

AB2180 amends the Government Code to allow local agencies to set tiered water rates based on proportional costs. Agencies can use various methods to allocate costs, including water source costs, facility operation, and peak demand contributions. Agencies are not required to justify tier breakpoints but must ensure that the rate for each tier does not exceed the proportional cost of service. This method applies to fees for water or sewer service but not to connection fees or capacity charges.

AB2180 allows local agencies to set tiered water rates based on proportional costs.

AB2180 amends the Government Code to allow local agencies to set tiered water rates based on proportional costs. Agencies can use various methods to allocate costs, including water source costs, facility operation, and peak demand contributions. Agencies are not required to justify tier breakpoints but must ensure that the rate for each tier does not exceed the proportional cost of service. This method applies to fees for water or sewer service but not to connection fees or capacity charges.