UWM Plan - Municipal Water District of Orange County

agencies and Board Committee members. The key components that helped guide
development of a penalty structure included:
• A financial incentive to discourage water usage above a client agency’s
allocation
• A penalty rate structure that is administratively easy to understand and
implement
• Penalty rates that are fair and appropriate during a shortage
From these components and input received from both the MWDOC Board and the client
agencies, a melded penalty rate structure was recommended. This was mainly due to
its “region-wide” style approach and similar structure to other MWDOC rates and
charges.
Melded Penalty Rate Structure – At the end of the allocation year, MWDOC would
charge a penalty to each client agency that exceeded their allocation. This penalty
would be assessed according to the client agency’s prorated share (acre-feet over
usage) of MWDOC penalty amount with MET. Below is an example of how this penalty
rate structure would apply:
Under the melded penalty rate structure, client agencies will only be assessed penalties
if MWDOC exceeds its total allocation and is required to pay a penalty to MET.
MWDOC Billing
MWDOC Water Supply Allocation Plan Page 18