O R O VA L L E Y W AT E R U T I L I TY N E W S L E T T E R
JANUARY 2024
A MESSAGE FROM OUR DIRECTOR CORRECTION: The January 2024 printed issue of the Oro Valley Water Utility Behind the Meter Newsletter contained an error in the potable water rate chart for residential customers. The Tier 3 and Tier 4 rates we re incorrectly listed at $8.80 per 1,000 gallons and $2.65 per 1,000 gallons, respectively. The correct Tier 3 rate is $6.05 per 1,000 gallons and the correct Tier 4 rate is $8.80 per 1,000 gallons. We apologize for the error and confusion.
Peter Abraham, P.E. Water Utility Director
Having a safe and reliable drinking water supply, despite being a necessity, is relatively inexpensive in terms of its importance. At around $0.007 per gallon from the tap, it is an astounding value especially when you consider the infrastructure required to produce, transport, and deliver this precious resource. Our drinking water comes from two sources of supply. Our first source of supply is directly under our feet, this is our groundwater. Even though this source of supply is only 300 feet below the surface of the land, the infrastructure required to pump and deliver this resource is substantial. Our second source of supply comes from the headwaters of the Rocky Mountains more than 1,300 miles away, this is our Colorado River water.
Despite this low price, water is a commodity, particularly in dry, drought-prone regions of the southwestern United States. To keep this resource as inexpensive as possible while discouraging its waste, the Utility has implemented a tiered commodity rate in addition to a fixed base rate. We refer to this as conservation pricing. Conservation pricing incentivizes lower water consumption by increasing the commodity rate as consumption increases. The chart below shows the current commodity pricing for each of the four tiers for a residential customer with a 5/8-inch meter (this represents 87% of Utility customers).
P OTA B L E W AT E R RESIDENTIAL CUSTOMERS
Meter Size
Base Rate
Tier 1 - $2.65 Rate: Per 1,000 Gallons
Tier 2 - $3.88 Rate: Per 1,000 Gallons
Tier 3 - $6.05 Rate: Per 1,000 Gallons
Tier 4 - $8.80 Rate: Per 1,000 Gallons
5/8 Inch
$21.14
0 - 7,000
7,001 - 16,000
16,001-32,000
OVER 32,000
Fortunately, Oro Valley residents have a strong conservation ethic as most of our residential customers fall within the Tier 1 commodity rate. Every year the Utility evaluates the commodity tiers through the rate setting process. Rate setting is a complex process that involves balancing many objectives in addition to promoting conservation. Every year beginning in October the Utility performs a water rates analysis to ensure sufficient revenues are generated to recover the cost of service. This analysis takes into consideration all costs associated with successfully operating Oro Valley’s municipal water system. Costs include outstanding debt, water resources, operations and maintenance, personnel, capital improvement projects and the cost of electric power. In closing, with continued planning, responsible rate setting, good stewardship of our assets and resources, support from Town leadership and the community, you can expect the continued long-term delivery of a safe and reliable water supply at the lowest cost possible. Looking forward,
Peter Abraham
Peter A. Abraham, P.E. | Water Utility Director 1 1 0 0 0 N L A C A Ñ A DA D R I V E | 5 2 0 - 2 2 9 - 5 0 0 0 | OV W AT E R @ O R OVA L L E YAZ . G OV | W W W. O R OVA L L E YAZ . G OV