Valencia Water Company customers will find out this week if the utility has deemed them "wasteful" - a title that may soon come with a hefty price tag.
The water bills mailed out this week to the water company's 25,000 customers will rate each on a scale ranging from super-efficient to wasteful.
In 2011, the water company plans to begin charging a higher base rate for those who use too much, said Robert DiPrimio, the utility's president. Under the company's new Water SMART program, those who use their water efficiently would see their rates stay the same - or even decrease slightly.
The exact numbers aren't final yet, but DiPrimio said the most wasteful could see their base rates more than triple.
The Valencia Water Company serves Valencia and parts of Saugus, Stevenson Ranch and Castaic.
To figure out whether customers are being wasteful, the company uses a personalized formula that considers factors such as the residential lot's total size and daily weather conditions. Ratepayers who think their individual equation is off can appeal to the company, DiPrimio said.
The strategy is being used by other utilities, with some claiming great success.
The Irvine Ranch Water District, which serves Irvine, started its tiered rate system in the 1990s. Since then, water companies throughout the southwestern United States have been studying the system.
"Our customers typically use a lot less than the average Orange County resident," said Shannon Reed, a spokeswoman for the Irvine Ranch Water District.
The average Orange County person uses more than 120 gallons of water every day, she said. Irvine Ranch ratepayers use 90 gallons a day.
"I believe it's because of our pricing structure," she said. "Our rate structure rewards those who conserve water, and to those who waste water, it sends a strong pricing signal to show them something's awry."
DiPrimio said he's unveiling the efficiency rating system a year before it would drive up wasteful residents' bills so people would have a chance to get used to the idea and adjust water use.
Ratepayers will be able to check their ratings online at www.valenciawater.com by the end of the week, once the bills come out, he said.
