DWP Asks Fee Hike if Rationing Is Ordered : Water: City Council is asked to approve a 6-cent increase in surcharge to recoup money expected to be lost through conservation.

Fearing that they could lose $40 million in revenue this year if mandatory water rationing takes effect, Department of Water and Power commissioners are seeking to raise the surcharge limit on customer water bills.

The commission voted unanimously Thursday to ask the Los Angeles City Council for permission to increase the 9-cent surcharge limit to 15 cents, which translates to about 2 cents a day on the average water user’s bimonthly bill. The council will get the proposal Tuesday.

The 15-cent surcharge is intended to recoup money the DWP expects to lose when customers begin conserving water. Even if the new cap is imposed, the DWP said it could still lose $10 million this year.

Under the proposed rationing plan, customers would be expected to cut their water use by 10% from 1986 levels as of March 1, and 15% by May 1. The 9-cent surcharge would be in effect under that first phase, and would be raised to 15 cents in May.

The average customer who conserves could save $6 on his bimonthly water bill despite the surcharge, DWP officials said. However, those who did not conserve would face an increase of $30 or more on their bill.

For example, a normal two-month bill for water and sewer service is $77.38. If a customer met the 10% conservation goal and was assessed the 9-cent surcharge, the bill would be $73.08. In May, if the customer met the 15% goal and was assessed the 15-cent surcharge, the bill would be $71.14.

Average users who did not conserve water, however, would be paying a minimum of $107.29 under the 15-cent surcharge, DWP officials estimated.

James F. Wickser, DWP assistant general manager, said the department is also planning budget cuts to help alleviate the revenue losses, including cutbacks in some construction projects, operating costs not related to customer service, and staff cutbacks through attrition.

The mandatory rationing plan is being proposed because of a statewide drought emergency.

If the plan is approved by the City Council, DWP customers will receive notices beginning in early March advising them of the number of gallons they must conserve to avoid penalties.

Penalty for the first violation would be $3 per billing unit (748 gallons) of excess use, plus 15% of the total water bill. The penalty for the second violation would be $3 per excess billing unit, plus 25% of the bill. A third violation would cost $4 per excess billing unit, and 75% of the bill.

Wickser said the department already is seeing compliance with a voluntary rationing program. Under that program, customers have been urged to limit yard watering and car washing, and to use water-saving shower heads and toilets. Those who install low-flush toilets can apply for a $100 rebate from the DWP. So far, 17,000 such rebates have been issued.