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What are tiered rates?

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What are tiered rates?

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Tiered rates are a structure in which customers are charged varying rates based on their amount of usage as a means of encouraging the most responsible water use by all. Agencies use several different types of tiered rates. A water budget-based structure, like the one PWD has adopted, is reasonable and attainable. The California Code of Regulations, Model Water Efficient Landscape Ordinance encourages local agencies and water purveyors to use economic incentives that promote the efficient use of water, such as implementing tiered-rate structures.

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