Economic Analysis of a Single Cost of Service Rate Structure

Client: North Kern Water Storage District

Location: Bakersfield, CA

Summary: North Kern Water Storage District (NKWSD) retained Cardno ENTRIX to analyze the equity, efficiency, and other economic issues associated with changing from an existing two-rate structure to a single class system. At the time of its formation, NKWSD established two classes of service based on landowners? ability to access District surface water versus pumping groundwater. Because of changes in the District?s infrastructure, it can now provide surface water to almost all of the land in the district. The study will analyze whether the current two-rate system or a single-rate system provides required water to landowners at minimum cost.