Wednesday, July 30, 2014

Message from the EID General Manager: Cost-of-Services Study completed

From page A2 | January 04, 2012 |

In the fall of 2011, the El Irrigation District completed an extensive Cost-of-Services Study to review our rates and ensure that costs were fairly allocated for all of our customers. As a result of the study, a model was developed to allocate the district’s operating and debt costs equitably among water, wastewater, recycled water, and customer classes. We discussed the study at 13 public board meetings and two community workshops.

As reported in October of 2011, in order to ensure more reliable revenue that is not heavily influenced by wet or dry years and allows the district to meet our financial needs, the model for calculating rates was changed from a 70-30 to a 50-50 formula, which means that 50 percent of the rate will be based on variable (commodity) charges and 50 percent will be based on fixed (base) charges. This change moves the formula back to what was used prior to 2008, when it changed to a 70-30 formula. As this goes to press, staff will be doing final refinements to the study model, which we will share with our customers in early 2012.

What does this mean to you as a customer? It means that we will need to make some changes in our rate structure. The overall impacts will differ among rate classes. For some customers, monthly bills will go up, and for others monthly bills will go down.

For instance, medium-use single family residential wastewater customer rates will go down about $3.70 per month. For medium-use dual-plumbed (water, wastewater, and recycled water) customers; rates will go down by $1.13 per month.

For medium-use single family residential water and wastewater customers, rates would increase by about $2.37 per month. For medium-use single family residential water customers, rates would increase by approximately $6.08 per month.

Because of the change to the 50-50 allocation method and changes in customer classes, there is no across-the-board percentage increase proposed. The proposed changes depend on individual customer class and each customer’s water use.

Why does the district have to do this so soon after the last round of rate changes? The district is only proposing this after eliminating 30 percent of our workforce over the last few years and reducing our expenditures from $46.7 million in 2008 to $42.9 million in 2012.

However, the short answer is that we have to have money to pay for the required infrastructure replacements that have been constructed over the last 10 years which were mostly mandated by the state and federal government; we have to continue to replace deteriorated infrastructure; and we need revenue stability to provide safe and reliable water, wastewater, and recycled water services even during wet years, as we experienced last winter.

EID is not alone in facing the challenge of rebuilding necessary infrastructure and coping with revenue shortages. Other agencies in our region and across the country struggle with the same thing. The utility infrastructure in the United States, much of it built in the mid-1900s, is wearing out as evidenced by the tragic pipeline failures at PG&E, as well as the numerous water main breaks throughout the country or the canal failure that happened in Placer County last fall.

EID does not want to end up in the same predicament as these agencies with water shortages or service interruptions, that’s why we are “planning forward” to replace infrastructure before catastrophic failure looms and costs district ratepayers even more.

Each customer will receive detailed information in the form of a Proposition 218 letter describing all proposed changes to our rate structure prior to a rate change implementation. Customers will have an opportunity to provide feedback to the district prior to rate changes, which we are planning in early spring of 2012.

I look forward to presenting you with the detailed report on the Cost-of-Services Study which outlines exactly what changes we will be proposing. In the meantime, if you would like to review materials produced in the 15-month study, please visit our website at and click on the Cost-of-Services tab.



Jim Abercrombie



District 2 candidate statements tell of goals

By Dawn Hodson | From Page: A1

Sand Fire nears containment: 66 structures destroyed

By Cole Mayer | From Page: A1 | Gallery

Schedule for Highway 50 blasting closures

By News Release | From Page: A3

Tails wagging over dog park approval

By Julie Samrick | From Page: A3

Quarter-acre fire in Kelsey

By Rebecca Murphy | From Page: A3



My Turn: Privatization of public services

By Mark Belden | From Page: A4

Policy book

By Mountain Democrat | From Page: A4



Piano replaced

By Letters to the Editor | From Page: A5

Comments sign-in policy

By Letters to the Editor | From Page: A5, 1 Comment

Save the Guinea Worm

By Letters to the Editor | From Page: A5, 1 Comment

Large bangs

By Letters to the Editor | From Page: A5, 2 Comments

Private property gets no respect

By Letters to the Editor | From Page: A5, 2 Comments

District 2 supervisorial special election

By Letters to the Editor | From Page: A5, 4 Comments

GDPUD management report

By Letters to the Editor | From Page: A5



Ex-Bruin lends a helping hand

By Steven Shaff | From Page: A8 | Gallery

Sierra Sharks finish middle of the pack

By Democrat Staff | From Page: A8

Roundup: July 29, 2014

By Democrat Staff | From Page: A8

Taz pull through for SSL trophy

By Patty Pope | From Page: A8



Nuns discover a pleasant place

By Lexi Boeger | From Page: B1 | Gallery

Bargains can be found everywhere

By Democrat Staff | From Page: B2 | Gallery

At a glance: Game time

By Mimi Escabar | From Page: B2

Barbecue dinner to benefit Blue Star Moms

By Mount Aukum Winery | From Page: B2

Stagecoach story takes riders on a trip

By Wendy Schultz | From Page: B3

Help needed to make cool ties

By Sew 4 | From Page: B3

Stroke and osteoporosis screenings planned

By Life Line Screening | From Page: B3

Gold Rush Days activities cancelled this year

By Sacramento Convention And Visitors Center | From Page: B4

Master Food Preservers: Tomato time

By Monique Wilber | From Page: B4

Sacramento area museums offer summer fun

By Sacramento Association Of Museums | From Page: B5

Build an author platform at the Library

By El Dorado | From Page: B5



Weather stats 7-29-14

By Michael Raffety | From Page: A2

Building permits 6/2-6/2014

By Michael Raffety | From Page: A2Comments are off for this post

Crime Log: July 17

By Cole Mayer | From Page: A2



Merlyn Wilbur Adams

By Contributor | From Page: A2

Wallace Murrel Thomas

By Contributor | From Page: A2


Real Estate




Women’s Health

Love the skin you’re in

By Noel Stack | From Page: WH4

Dump stress and improve your health, productivity

By Wendy Schultz | From Page: WH7Comments are off for this post

Women’s Health Expo

By Marshall Medical | From Page: WH8

Find the confidence you need to fight back

By Special to the Democrat | From Page: WH12

Our choices directly affect our health

By Special to the Democrat | From Page: WH14

They’re NOT your mother’s hearing devices!

By Marshall Medical | From Page: WH17