The City began a transition to a new way of pricing in 2005. This new pricing structure, called "marginal cost pricing,˝ is designed to ensure that customers who cause peak demands pay their appropriate share of the costs.
In summer, daily water use in Olympia typically doubles, due mostly to commerical and residental irrigation (i.e. sprinkler systems). This high use, or "peak demand,˝ increases costs for the Drinking Water Utility. That’s because it requires us to obtain new water sources and build larger infrastructure.
Ready-to-Serve Fee: Water bills include a flat, ready-to-serve fee and a consumption charge based on use. The term "ready-to-serve" means that the water is "ready" for you to use at any time. The ready-to-serve fee covers the utility’s fixed costs that don’t change with consumption, such as meter reading and billing. See table at right for a breakdown of the fee structure.
Key Services:
- Ensure you receive safe and reliable drinking water at your home or business.
- Build and plan for new facilities, including storage tanks and pump houses.
- Maintain and provide proactive maintenance on the water system.
- Protect and monitor our drinking water sources.
- Provide water conservation services.
- Expand our new reclaimed water system to help conserve our drinking water supply.
What the Increase Pays For: The rate increase will ensure that we keep our system up-to-date and efficent. The increase will help pay for planned improvements, including:
- One new supply well;
- Designing a new storage tank;
- Water system security projects; and
- Replacement of water lines (pipes).
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