On April 1, 2021, the City of Lawrence began using an “Individual Inclining Block” rate methodology to calculate residential customers’ water bills. The methodology was approved by the City Commission on December 15, 2020.
The Individual Inclining Block Rate methodology is a three-block system that utilizes each customer’s Winter Quarter Average (WQA) for water consumption rates and encourages water conservation and provides better equity among customers.
How it works
The residential blocks are calculated using each customer’s Winter Quarter Average (WQA), which is an average usage calculated from the customer’s actual water usage for the billing periods falling in the months of December, January and February (the winter months). The WQA will be used to calculate the monthly water charges for all subsequent months, until a new average usage is calculated during December, January and February (the winter months) the following year.
As of April 1, 2021, monthly water charges are based on each customer’s Winter Quarter Average (WQA). For customers who have very low water consumption totals in winter months, a minimum WQA of 3,000 gallons will be used for water charge calculations. This minimum raises the block rate thresholds, so low winter consumers are not negatively impacted in warmer months.
Billing blocks are determined each month and are contingent on each residential customer’s water usage for that month. Residential customers will be billed at the Block 1 rate for all consumption up to and including 125% of the WQA in any given month. Any usage in a single month that is greater than 125% through 200% of the WQA will be billed at the Block 2 rate. Any usage in a single month above 200% of the WQA will be charged at the Block 3 rate.
Customers who would like to better understand how these changes will directly change their bill are encouraged to try the online utility billing estimator. To best see the difference between a cold-weather month and warm-weather month, the City recommends using consumption totals from previous billing cycles to input into the calculator.
2023 Rates
| Current Block Rates | Inside City | Outside City |
|---|---|---|
| Residential - Block 1 (Up to 125% of WQA) | $9.17 per 1000 gallons | $10.19 per 1000 gallons |
| Residential - Block 2 (>125-200% of WQA) | $10.09 per 1000 gallons | $11.10 per 1000 gallons |
| Residential - Block 3 (More than 200% of WQA) | $10.55 per 1000 gallons | $11.61 per 1000 gallons |
What it means
Residential customers who use water for everyday tasks (i.e. bathing, cooking, laundry, etc.) with little to no additional warm-weather uses, will likely remain in the first block rate throughout the year. Those customers with additional usage in the warmer months (i.e., irrigation) will be charged accordingly for the higher amount of water they are using.
Example
A customer who lives inside the city limits and was billed for usage on their December bill of 2,000 gallons of water, 4,000 gallons on their January bill and 3,000 gallons on their February bill. Their Winter Quarter Average (WQA) would be 3,000 gallons (the average of the three winter months’ usage). The below calculations are based on 2022 rates.
A 3,000 gallon WQA would set the following thresholds for that customer at:
- Block 1 – Up to 3,750 total gallons used in a month
- Block 2 – 3,751-6,000 total gallons used in a month
- Block 3 – 6,001+ gallons total gallons used in a month
In March, the customer used 3,100 gallons of water. So, on the bill they receive in April, they would be charged at the Block 1 rate ($7.64/1,000 gallons) for all 3,100 gallons of water, because 3,100 is 125% or less of the customer’s WQA. The “Water Charges” on their bill would total $23.68.
In April, the customer used 5,700 gallons of water. So, on the bill they receive in May, they would be charged at the Block 1 rate ($7.64/1,000 gallons) for the first 3,750 gallons (125% of the WQA) of water they used, and the Block 2 rate ($8.41/1,000 gallons) for the remaining 1,950 gallons, because their total usage of 5,700 gallons is in the >125-200% range of the WQA. The “Water Charges” on their bill would total $45.05 ($28.65 for “Water Charges Block 1” and $16.40 for “Water Charges Block 2”).
In May, the customer’s usage went back down and they only used 2,500 gallons of water. So, on the bill they receive in June, they would be charged at the Block 1 rate ($7.64/1,000 gallons) for all 2,500 gallons of water they used, because 2,500 is 125% or less of the customer’s WQA. The “Water Charges” on their bill would total $19.10.
In June, the customer’s water usage increased significantly and they used a total of 7,500 gallons of water. So, on the bill they receive in July, they would be charged at the Block 1 rate ($7.64/1,000 gallons) for the first 3,750 gallons (125% of the WQA) of water they used, the Block 2 rate ($8.41/1,000 gallons) for the next 2,250 gallons (up to 200% of the WQA) and the Block 3 rate ($8.79/1,000 gallons) for the remaining 1,500 gallons (above 200% of the WQA) of water they used. The “Water Charges” on their bill would total $60.75 ($28.65 for “Water Charges Block 1,” $18.92 for “Water Charges Block 2,” and $13.18 for “Water Charges Block 3”).
*This example is for illustrative purposes only.