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Notice of Public Hearing

PROPOSED CHANGES TO WATER RATES AND SERVICE CHARGES

DATE: TUESDAY, NOVEMBER 4, 2025 | 6:00 P.M.

Rowland Water District
3021 Fullerton Road, Rowland Heights, CA 91748

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IMPORTANT INFORMATION ABOUT YOUR WATER RATES

The Board of Directors of the Rowland Water District invites the community to a public hearing to consider rate changes for water and recycled water charges. This includes proposed pass-through authority that would allow Rowland Water District to efficiently respond to future wholesale water rate increases. If adopted as proposed, the adjusted rates and charges would become effective for services provided on and after January 1, 2026, and the scheduled increases may be implemented annually on January 1 of each year, over the next five years, through and including January 1, 2030. This document carefully explains each element of the proposed changes to rates and charges, supported by a rate study completed by independent rate consultants.

Under California state law, all property owners and customers of record may submit a written protest and/or a legal objection to the proposed rate changes. Only one protest per parcel is permitted. Please refer to the “How to Participate” section of this document for instructions on submitting a formal written protest and/or a legal objection against the proposed action. All written protests and objections will be verified. You may also attend the public hearing on the above date and time.

WHY HAVE I RECEIVED THIS NOTICE?

Rowland Water District (RWD) is proposing annual rate increases including pass-through authority that would enable RWD to adjust water service rates in the future to reflect increases in the cost of purchasing water from its wholesale suppliers without holding a separate public hearing for each increase. You have received this notice because if approved, these changes could affect your monthly water bill.

WHY ARE RATE CHANGES NECESSARY

Rowland Water District’s priority is providing high-quality, affordable drinking water and recycled water to our customers. RWD engaged an independent expert consulting firm to perform a rate study and determine the revenue required to maintain and enhance current service levels. The study underscores the costs impacting RWD’s water service and proposes appropriate rates to proportionately allocate the costs of providing water to our customers.

The rate study identified four factors that support the proposed rates and charges:

  • Rising Costs
    More than half of RWD’s operating budget is allocated for purchasing imported water, which helps provide our community with the water resources they need to drink, cook, clean and thrive. Recently, one of RWD’s wholesale providers doubled its water rates, placing increased pressure on RWD’s finances. RWD’s proposed rate changes would ensure we can continue to meet our service area’s water needs.
  • Reliable Systems

    Rowland Water District carefully maintains its water systems to ensure dependable deliveries for all. Rate increases are necessary to allow RWD to invest in critical rehabilitations and improvements, including:

    • Storage reservoir rehabilitations
    • Fullerton grade separation
    • Distribution improvements
    • Booster pump replacements
    • Equipment and vehicle investments
    • Water prepayments
  • Maintaining Healthy Reserves
    To safeguard the financial health of our system, Rowland Water District would continue to meet reserve requirements and expand this effort to establish a new emergency reserve to cover any unforeseen system interruptions. This would provide funding for any repairs while scheduled routine maintenance continues as planned.

DIVERSIFYING WATER RESOURCES

Rowland Water District transports, maintains and delivers mostly imported water to nearly 55,000 people. RWD has been taking critical steps to diversify its water resources and secure a reliable, drought-resistant water supply. Our water diversity initiatives include:

  • Increasing groundwater supply and pumping capacity:

    Projects like the Six Basins Groundwater Project – Phase 3 help expand groundwater pumping and storage capabilities.

  • Strengthening regional partnerships and water agreements:

    Rowland Water District collaborates with local water agencies to secure additional groundwater rights and maximize water sharing agreements.

  • Enhancing water treatment and quality protection:

    RWD supports the development of new treatment facilities, such as the Pico Water District Central Basin Project, to address contaminants like perand polyfluoroalkyl substances (PFAS).

  • Advancing recycled water and potable reuse efforts:

    Rowland Water District is evaluating the feasibility of recycled water for potable reuse and potentially increasing long-term supply reliability.

  • Expanding water banking and emergency supplies:
    RWD is exploring adaptive strategies, including expanded storage agreements with the Main San Gabriel Basin Watermaster and expansion of the California Domestic Water Company Agreements, to ensure supply availability during droughts and emergencies.
  • Investing in infrastructure for climate resilience:

    Rowland Water District is upgrading system redundancy and infrastructure to mitigate risks from climate change, earthquakes, and extreme weather events.

  • Monitoring and implementing emerging contaminant treatments:

    RWD continues to assess and upgrade treatment technologies to comply with evolving state and federal water quality regulations.

WHERE YOUR DOLLARS GO

Your water bill supports a high-quality water supply for every member in our community. Learn how Rowland Water District allocates each dollar of revenue from its customers below.

DID YOU KNOW?

As a government agency, Rowland Water District cannot earn a profit from the services it provides. RWD cannot charge more than the cost associated with providing services to its customers.

HOW WERE THE PROPOSED RATES CALCULATED?

The proposed rates were calculated to recover the costs of providing water service and proportionately allocate those costs on a parcel basis. Customers are divided into classes based on shared usage characteristics and cost profiles. The customer classes include Single-Family Residential Customers, All Other Customers (commercial, industrial, governmental, institutional, and multi-family residential), and Recycled Water Customers. Rowland Water District’s rate structure includes the following components:

  • Fixed Service Charge
  • Potable Water Commodity Charge
  • Recycled Water Commodity Charge
  • Fire Service Charge
  • Pass-Through Rate
  • Zonal Rate
  • Water Shortage Surcharge

Proposed Single Family Residential Monthly Fixed Charge

This is a fixed monthly charge based on the meter size serving a property. This charge is calculated to recover RWD’s fixed costs of operating and maintaining the water system and delivering water. These costs include fixed purchased water costs, maintenance, repair and replacement of infrastructure, water quality testing, meter reading, customer billing and collection, debt service payments and employee salaries. *Single-family residential customers who have a 1” meter to meet fire flow requirements were captured under 5/8” meters to reflect the capacity these customers utilize within the system.

Table describing new monthly rates for single family residential meters by meter size in inches

*These charges do not include any pass through rates or charges

Man filling glass with water from the sink

Other Potable Monthly Fixed Charges

Table describing new monthly rates for commercial, industrial, governmental, institutional, and multi family residentialmeters by meter size in inches

*These charges do not include any pass through rates or charges. *SFR 1” meters are charged the 3/4” meter

All other customers, including commercial, industrial, governmental, institutional, and multi-family residential, pay a fixed monthly charge on their water bill. This charge is determined by the meter size on the customer’s property and contributes to the same essential RWD costs as the fixed service charges paid by Single-Family Residential Customers and Recycled Water Customers.

Man washing bellpeppers in the sink

PROPOSED RATE SCHEDULES

2 construction workers digging a hole in the ground

Fire Service Charges

This fixed monthly service charge is calculated based on the connection size supplying private fire suppression facilities. It is designed to recover the cost of providing water for private fire protection services, including defraying the additional overhead costs of serving and maintaining this infrastructure. This charge is applied only to properties that, as a condition of extending or initiating water service, are required to install a private fire suppression system, or have requested water delivery for private fire service protection.

Table describing new monthly rates for providing water for fire protection services by meter size

Proposed Recycled Monthly Fixed Charges

Recycled Water Customers pay a fixed monthly charge determined by the meter size serving the property. This supports the same essential RWD costs as the fixed service charges paid by Single-Family Residential customers and all other customer classes except for fixed purchased water costs for potable water.

Table describing new monthly rates for recycled water customers by meter size in inches
The Rowland Water District Recycled Water sign

Variable Rates ($/hcf)

These are variable rates applied for each unit of delivered potable water or recycled water. One unit equals 100 cubic feet (hcf), or 748 gallons. The rates are calculated to recover RWD’s variable costs associated with providing potable and recycled water service. This includes the costs of purchasing and producing water, electricity and treatment chemicals, and replacing infrastructure. The monthly amount of these rates varies by the number of units (hcf) of potable or recycled water a customer uses during the billing period. The proposed changes would consolidate the current three-tier rate structure into two tiers, more accurately allocating costs across customer water use.

Table describing new rates per hcf by customer class and tier, potable and recycled

*These rates do not include any pass through rates or charges.

Zonal Rates

These are variable rates for customers located in higher elevations. In addition to the Potable Water Commodity Charge, these customers receive a surcharge imposed per unit of potable water delivered. This surcharge is calculated to recover the additional costs of supplying potable water to these customers, including the energy costs of the pumping stations used to pump water up to the surface level for Zone 1 and to higher elevations for Zones 2 through 6 of RWD’s retail water service area. In addition, the new Zonal Rates reflect the costs associated with Zone-specific new water treatment equipment.

Table describing new rates per hcf by zone

Water Shortage Surcharges

During periods of severe drought, it may be necessary to implement mandatory conservation measures to protect and extend Rowland Water District’s water supply.

Previously called Drought Rates, the Water Shortage Surcharge will be the incurred up to the maximum amount contained within the chart to the right. These surcharges enable the Board of Directors to increase the Potable Water Variable Rates during declared drought levels, state-mandated reductions in the level of potable water usage, or other natural disasters or events.

Table describing new variable rates by tier or potable for each stage of drought

*These surcharges do not include any pass through rates or charges.

HOW WOULD THIS IMPACT MY BILL

For single-family residential customers with a 5/8-inch or 1-inch meter and using 11.0 hcf units of water, the average monthly bill would increase by $11.71 if the proposed rates are implemented. This amount considers variations in winter and summer use.

Commercial customers with a 2-inch meter who use 118.0 hcf units of water would see an average increase of $24.48 on their monthly bill.

Table describing new rates for single family and commercial customers
Woman reading a paper

Online Bill Estimator

Need help calculating the proposed rate changes’ impact on your water bill? Use our online bill estimator here.

UNDERSTANDING PROPOSED PASS-THROUGH RATES

At Rowland Water District, our top priority is delivering safe, reliable, and high-quality water to our customers every day. As part of our commitment to long-term sustainability and financial responsibility, we continually evaluate ways to manage rising water supply costs while maintaining excellent service and infrastructure. One of the tools being proposed to help us achieve this goal is the implementation of Pass-Through Rates.

  • WHAT ARE PASS-THROUGH RATES?

    Pass-Through Rates are a proposed mechanism that would allow Rowland Water District to pass-through any rate increases imposed on RWD by its wholesale suppliers without needing to hold a separate public hearing for each increase.

  • WHY IS ROWLAND WATER DISTRICT PROPOSING PASS-THROUGH RATES?

    More than half of RWD’s operating budget goes toward purchasing imported water. Recently, one of our wholesale providers significantly increased its rates, which directly impacts our operating costs. Implementing Pass-Through Rates would allow us to respond more efficiently and responsibly to future wholesale rate changes, helping us maintain the high standard of service our customers expect, without unnecessary delays or administrative costs. This approach supports financial stability and ensures regulatory compliance, resulting in more accurate rates rather than forcing RWD to predict or guess what the increase in imported water costs might be in future years.

  • HOW WOULD THE PASS-THROUGH RATES WORK?

    If adopted, beginning January 1, 2026, RWD could adjust rates annually, or as needed through July 1, 2030— based solely on increases from its wholesale suppliers. Any increase:

    • Would not exceed the actual wholesale rate increase, and
    • Would not exceed 100% of the impacted rates in any fiscal year.
  • WILL CUSTOMERS BE NOTIFIED BEFORE A PASS-THROUGH RATE IS IMPLEMENTED?

    Yes. Rowland Water District will provide written notice by mail to all affected properties at least 30 days in advance of any Pass-Through Rate adjustment.

  • CAN RWD RAISE RATES FOR OTHER REASONS THROUGH THE PASS-THROUGH?

    No. Pass-Through Rate adjustments may only reflect increased costs from water wholesalers. They cannot be used to fund unrelated projects, operations, or generate revenue beyond the cost of providing service.

  • WILL THERE BE A LIMIT TO HOW MUCH RATES CAN INCREASE DUE TO PASS-THROUGHS?
    Yes. The total rate adjustment cannot exceed 100% of the impacted rate in any fiscal year, regardless of how much wholesale costs increase.
  • WHY NOT HOLD A HEARING EACH TIME INSTEAD OF USING PASS-THROUGHS?

    Holding a full Proposition 218 process for wholesaler rate increases would be inefficient, time-consuming, and costly. The Pass-Through mechanism allows RWD to respond quickly to uncontrollable wholesale price changes while still maintaining transparency and compliance with state law.

  • IS RWD ALLOWED TO PROFIT FROM PASS-THROUGH RATE INCREASES?

    No. By law, water rates, Pass-Through or otherwise, cannot exceed the actual cost of providing water service.

Watch a video breakdown of RWD’s pass-through rates and how they may impact your water bill here.

HOW CAN I LEARN MORE OR SHARE MY INPUT?

We welcome your questions and comments. For more information about the proposed Pass-Through Rates or to speak with a representative, please contact us at (562) 697-1726.

HOW TO PARTICIPATE

  • Call, Visit or Log-in: Customers can find the water rate study at RWD’s office at 3021 Fullerton Road, Rowland Heights, CA 91748, or online at rwd.org/Rates-2026. Please call us at (562) 697-1726 with any questions.
  • Write a protest: Any record owner of a parcel upon which the water rates and charges are proposed to be imposed and any tenant directly liable for the payment of water rates and charges (i.e., a customer of record who is not a property owner) may submit a written protest to the proposed rate adjustments and increases to RWD’s proposed water rates adjustments. Only one protest will be counted per identified parcel.

    Written protests must:

    1. State that the identified property owner or tenant is opposed to the proposed rate changes;
    2. Provide the location of the identified parcel (by street address, assessor’s parcel number, or customer account number); and
    3. Include the name and signature of the property owner or tenant submitting the protest.

    Written protests may be mailed or delivered in-person to Rowland Water District, Attention: Secretary of the Board, 3021 Fullerton Road, Rowland Heights, CA 91748, and may be deposited in the payment deposit box.

  • Submit a formal written objection: Any record owner of a parcel upon which the water rates and charges are proposed to be imposed and any tenant directly liable for the payment of water rates and charges (i.e., a customer of record who is not a property owner) may submit a written legal objection.

    To be valid, the written legal objection must include the following information:

    1. Written legal objections must be mailed or delivered in person to: Rowland Water District, Attention: Secretary of the Board, 3021 Fullerton Road, Rowland Heights, CA 91748.
    2. Specify the rate or charge for which the objection is being submitted.
    3. Include your name, parcel number and/or service address, and signature.
    4. Indicate that the submission is a legal objection.
    5. Specify the grounds for alleging Rowland Water District’s noncompliance with Proposition 218. Please note that the specified grounds must be sufficiently detailed to allow RWD to determine whether alterations to the proposed rates are needed. By way of example, an objection stating a proposed rate change violates Proposition 218, without explaining the basis for this claim, is insufficient for the purpose of administrative exhaustion.

    Please note that any legal challenge must be brought within 120 days of adoption of the proposed rates and charges described in this notice.

    Written legal objections submitted by email, fax, or other electronic means will not be accepted. Objections must be received by 5:00 PM on October 28, 2025, to be valid. Failure to submit an objection on time will bar any right to challenge the charge through a legal proceeding. All timely objections received will also be counted as a protest. Any objection received after 5:00 PM on October 28, 2025, will only be considered and counted as a protest.

  • Attend the Public Hearing:

    Protests may also be submitted at the Public Hearing on:

    Date: Tuesday, November 4, 2025
    Time:     6:00 p.m.
    Location: Rowland Water District Board Room
    Address:     3021 Fullerton Road, Rowland Heights, CA

    All written protests must be received before the conclusion of the public comment portion of the public hearing. All members of the public will have an opportunity to speak on the proposed water rate changes at the public hearing; however, only written protests will be counted to determine whether a majority protest exists.

Public Hearing Process: During the public hearing, the Board will hear all oral comments and consider all written protests to the proposed rate changes, as well as all valid legal objections and responses. Protests submitted by email or other electronic means will not be accepted as valid. Any oral comments made at the public hearing will not qualify as formal protests unless accompanied by a written protest.

Upon the conclusion of the hearing, the Board will tabulate the protests and consider the adoption of the proposed rates and charges. If written protests against the proposed rates and charges as outlined in this notice are not presented by the owners or customers of record of a majority of the identified parcels upon which the rates and charges are proposed to be imposed, the Board will be authorized to adopt the proposed rates and charges. If adopted as proposed, the increased rates and charges would become effective for services provided on and after January 1, 2026, and increased each January 1 thereafter through January 1, 2030.

WE ARE HERE TO HELP

Rowland Water District offers a Low-Income Assistance Program where eligible customers can receive a $10 monthly credit on their water bill.

Visit rwd.org/low-income-assistance for more information.

Receptionist helping a woman

RESIDENTIAL REBATES TO SAVE MONEY ON YOUR WATER BILL

Rowland Water District is here to help you save water and money through rebates on water-saving devices and low-water landscaping incentives. These are offered in partnership with our wholesaler, Metropolitan Water District of Southern California (MWD).

Turf Replacement Program: MWD offers rebates to Rowland Water District customers that incorporate water-saving plants, technology, irrigation systems, and hardware into their landscaping. Rebates start at $2 per square foot of grass replaced with California-friendly landscaping, up to 5,000 square feet.

Outdoor:

  • Weather-Based Irrigation Controllers
  • Rotating Sprinkler Nozzles
  • Rain Barrels & Cisterns
  • Soil Moisture Sensor System

Indoor:

  • High-Efficiency Clothes Washers
  • Premium High-Efficiency Toilets
Water falling into a barrel

Visit www.socalwatersmart.com or call (888) 376-3314 for more information on available rebates.