Water Rates

How Do Our Water Rates Compare?

Our water rates are in alignment with the average rates of neighboring public utilities in the Truckee-Tahoe region, and other local water utilities have announced comparable or higher rate increases for the next few years. A typical household using 5,000 gallons per month will see average costs in line—or lower—than the regional average.

Additionally, TDPUD does not receive any property tax dollars. Some agencies included in the below graph do receive property tax funds, which subsidizes their water rates. 

(average across all customer classes)

Your Water Rate Questions, Answered

What are the water rate increases for 2026-2030? 

TDPUD adopted an annual increase of 6.5% each year from 2026 to 2030. This represents the average increase across all customer classes. Customers can find more specific information about how these increases would impact their specific bill in our Notice of Public Hearing: Proposed Water Rate Increases for 2026-2030

TDPUD reviews and updates its water cost of service on a five-year basis, to propose rates to ensure that we can maintain our system and deliver reliable service, in a way that is equitable for our rate payers. 

While TDPUD analyzes its cost of service on a five-year basis, the Board adopts budgets on a two-year basis. This is why we focus primarily on the 2026 and 2027 rates in our discussions at this time, since we are currently in the process of setting the 2026-27 budget.

TDPUD’s Board of Directors held a public hearing and received public comment on Wednesday, Nov. 19 at 6pm. As part of the Proposition 218 public process, TDPUD customers had the opportunity to protest and/or object to the proposed water rates. Specific information on the difference between a protest and an objection, how to submit and deadlines for each, can be found in the below documents.

Review the following documents to learn more

• Notice of Public Hearing: Proposed Water Rate Increases for 2026-2030
• 2025 Water Rate Study
• Prop 218 Written Objection Form

What does this mean for my bill? 

Following the adoption of the 2026-2030 water rates, customers will see on average a 6.5% increase annually for the next five years.  

For example, if you have an average bill of $115 in 2025, this is what you would pay for the next five years (rounded to whole dollars): 

• 2025: $115/month 
• 2026: $122/month (+$7 to prior year)
• 2027: $130/month (+$8 to prior year)
• 2028: $138/month (+$8 to prior year)
• 2029: $147/month (+$9 to prior year)
• 2030: $157/month (+$10 to prior year)

(assuming similar water usage YOY and applying the average increase amount)  

It should be noted that 6.5% is the average increase across all customer classes. Specific increases may vary slightly. Proposed increases for every customer class can be found in the 2025 Water Rate Study, beginning on page 80.

Here is an example of how this rate increase would affect a residential customer living in Pump Zone 2, using 3,000 gallons per month. Their total monthly bill would increase by $6.88 in 2026 if the proposed water rate increase is adopted. An explanation of what the different parts of the bill mean, and how the increase affects each one can be found later in this FAQ.

What does my water bill pay for? 

Water rates pay for everything it takes to deliver water to our customers. This includes costs associated with system maintenance, water pumping, water delivery, capital infrastructure projects, administration, regulatory compliance, including water quality testing, leak repairs and water loss reduction and wildfire system hardening.

How does TDPUD determine its cost of service? 

TDPUD hires an independent, experienced consultant to analyze past and current data to determine our predicted water cost of service and produce a rate study that determines what our water rates need to be set at for TDPUD to be able to fund the water utility. This information was presented to the TDPUD and public in Fall 2025, and is available on the TDPUD website.

What do the different parts of my water bill mean? 

Base Charge: this is a monthly fixed service charge that covers operational costs, maintenance and administrative expenses. All water utility customers pay a base charge to fund critical infrastructure, such as pump facilities, pipelines and hydrants. 

All customers must pay for the water system to be functional and be properly maintained. You are paying for the system to be ready to serve you when you are using water. 

Commodity Charge: this is based on what it costs to produce the water from the source, so it is measured by the amount of water you use. On your bill, you will see the commodity charge represented in a price per 1,000 gallons. We do this because the cost per gallon is so small, it is difficult to represent. But that does not mean you are billed per thousand gallons of usage. If you only use 400 gallons of water, that is the amount you will be billed for. 

For residential customers, there are two pricing tiers: 0-8,000 gallons per month usage and 8,000+ gallons per months usage. If you use less than 8,000 gallons per month, you will be billed at $.00134/gallon (or $1.34 per 1,000 gallons). If you use more than 8,000 gallons, you will be billed at $.00191/gallon (or $1.91 per 1,000 gallons). 

Pump Zone Charge: this accounts for the energy costs of pumping water to your specific location, particularly if you are in a higher elevation zone. This is because pumping is very energy intensive, and the energy costs needed to deliver water to you at a higher elevation are a portion of the water utility’s cost of service. 

There are seven total pump zones. Pump zone 1 does not pay a pump zone charge. Pump zone 7 pays $.00612/gallon (or $6.12 per 1,000 gallons). The increases between pump zones are incremental.

More Water Rate FAQs