The domestic water rates for single family properties, individual condominium units and townhouse units equipped with a meter shall consist of three components - a base charge, a commodity charge and a pump zone charge.

The commercial water rates for all other multiple dwelling units, trailer parks, public use, dedicated irrigation and commercial establishments shall consist of three components - a base charge, a commodity charge and a pump zone charge.

Residential customers are charged based on actual electric use recorded on an electric meter.

For more information on Time-of-Use Rate, click here.

Commercial customers are charged based on actual electric use recorded on an electric meter.

A Power Cost Adjustment credit is issued when power costs for the quarter are less than TDPUD budgeted for. All customers—residential and commercial—receive this credit on their bill for the following three months. If board approval of the PCA comes after the monthly billing cycle has begun, the credit will be spread over two months' bills, instead of three.

Many factors influence our energy purchasing costs. In the past, this discrepancy has been caused by lower prices than expected on resources like natural gas, landfill gas and wind. During the winter, energy usage is heavily influenced by heating costs. In milder winters, customers use less energy for heating, which results in less energy purchases than we plan for.

The overall credit amount is determined by the amount of the budget overage. The exact credit amount each account receives is determined by usage.

The Power Cost Adjustment was approved in November 2023 as part of the 2024-25 electric rates. It went into effect on January 1, 2024.

No. When there is a budget surplus for power purchasing, TDPUD no longer keeps that overage in reserves, which immediately benefits customers. However, it’s important to note that if there is a quarter where power costs exceed budget, that will result in a subsequent overage charge for customers.

TDPUD proposed an annual increase of 6.5% each year from 2026 to 2030. This represents the average increase across all customer classes. Customers can find more specific information about how these increases would impact their specific bill in our Notice of Public Hearing: Proposed Water Rate Increases for 2026-2030. 

TDPUD reviews and updates its water cost of service on a five-year basis, to propose rates to ensure that we can maintain our system and deliver reliable service, in a way that is equitable for our rate payers. 

While TDPUD analyzes its cost of service on a five-year basis, the Board adopts budgets on a two-year basis. This is why we focused primarily on the 2026 and 2027 rates in our discussions and presentations at the board meetings in summer and fall of 2025, since we were in the process of setting the 2026-27 budget.

TDPUD’s Board of Directors held a public hearing and received public comment on Wednesday, Nov. 19 at 6pm. As part of the Proposition 218 public process, TDPUD customers had the opportunity to protest and/or object to the proposed water rates. Specific information on the difference between a protest and an objection, how to submit and deadlines for each, can be found in the below documents.

Review the following documents to learn more:

• Notice of Public Hearing: Proposed Water Rate Increases for 2026-2030
• 2025 Water Rate Study
• Prop 218 Written Objection Form

Following the adoption of the 2026-2030 water rates, customers will see on average a 6.5% increase annually for the next five years.  

For example, if you have an average bill of $115 in 2025, this is what you would pay for the next five years (rounded to whole dollars): 

• 2025: $115/month 
• 2026: $122/month (+$7 to prior year)
• 2027: $130/month (+$8 to prior year)
• 2028: $138/month (+$8 to prior year)
• 2029: $147/month (+$9 to prior year)
• 2030: $157/month (+$10 to prior year)

(assuming similar water usage YOY and applying the average increase amount)  

It should be noted that 6.5% is the average increase across all customer classes. Specific increases may vary slightly. The increases for every customer class can be found in the 2025 Water Rate Study, beginning on page 80.

Here is an example of how this rate increase would affect a residential customer living in Pump Zone 2, using 3,000 gallons per month. Their total monthly bill will increase by $6.88 in 2026 under the new water rates. An explanation of what the different parts of the bill mean, and how the increase affects each one can be found later in this FAQ.

Water rates pay for everything it takes to deliver water to our customers. This includes costs associated with system maintenance, water pumping, water delivery, capital infrastructure projects, administration, regulatory compliance, including water quality testing, leak repairs and water loss reduction and wildfire system hardening.

TDPUD hires an independent, experienced consultant to analyze past and current data to determine our predicted water cost of service and produce a rate study that determines what our water rates need to be set at for TDPUD to be able to fund the water utility. This information was presented to the TDPUD and public in Fall 2025, and is available on the TDPUD website.

2026 Rate increase by bill section for residential customers:

• Base Charge:
• 5/8" x 3/4" inch meter: $103.03 to $108.50 (5.3% increase) 
• 3/4" meter: $103.03 to $108.50 (5.3% increase) 
• 1" meter: $122.89 to $129.41 (5.3% increase)
• Commodity Charge:
• 0-8,000 gallons: $1.34 per 1,000 gallons to $1.75 per 1,000 gallons (30% increase) 
• 8,000+ gallons: $1.91 per 1,000 gallons to $2.37 per 1,000 gallons (24% increase) 
• *When measured by percent increase, this change appears large, but it amounts to less than .50 cents per thousand gallons. 
• Pump Zone Charge: 5.9% increase across Zones 3-7, 5.8% increase for Zone 2

TDPUD is here to serve the needs and interests of our community. If more than 50% of the community had protested the rate increase and it was not adopted, TDPUD would not have been be able to fund the Board-approved capital improvement projects it had planned for the next five years, which address our aging infrastructure. 

TDPUD’s board would have been required to re-engage with its consultant, HDR, for further review of the revenue requirements needed to fund the water utility, and as a result TDPUD would likely have needed to defer and/or re-prioritize planned maintenance and capital projects. This would have likely resulted in delayed and/or postponed projects, potentially resulting in increasing costs due to an expanded project timeline. 

TDPUD manages $160 million in water capital assets and has a responsibility to sustainably manage these investments, ensuring responsible financial stewardship for our ratepayers, which is the reason behind the adopted water rate increases.

Base Charge: this is a monthly fixed service charge that covers operational costs, maintenance and administrative expenses. All water utility customers pay a base charge to fund critical infrastructure, such as pump facilities, pipelines and hydrants. 

All customers must pay for the water system to be functional and be properly maintained. You are paying for the system to be ready to serve you when you are using water. 

Commodity Charge: this is based on what it costs to produce the water from the source, so it is measured by the amount of water you use. On your bill, you will see the commodity charge represented in a price per 1,000 gallons. We do this because the cost per gallon is so small, it is difficult to represent. But that does not mean you are billed per thousand gallons of usage. If you only use 400 gallons of water, that is the amount you will be billed for. 

For residential customers, there are two pricing tiers: 0-8,000 gallons per month usage and 8,000+ gallons per months usage. If you use less than 8,000 gallons per month, you will be billed at $.00134/gallon (or $1.34 per 1,000 gallons). If you use more than 8,000 gallons, you will be billed at $.00191/gallon (or $1.91 per 1,000 gallons). 

Pump Zone Charge: this accounts for the energy costs of pumping water to your specific location, particularly if you are in a higher elevation zone. This is because pumping is very energy intensive, and the energy costs needed to deliver water to you at a higher elevation are a portion of the water utility’s cost of service. 

There are seven total pump zones. Pump zone 1 does not pay a pump zone charge. Pump zone 7 pays $.00612/gallon (or $6.12 per 1,000 gallons). The increases between pump zones are incremental.

As a public utility, TDPUD’s utilities are funded almost entirely by rates, and these rates are based on the actual cost of service to operate the utility. It’s no secret that costs are rising in every aspect of our lives, and the cost to operate the water utility is not immune to the same cost pressures. Some of the major factors driving TDPUD’s water utility cost of service is system maintenance, increasing capital infrastructure replacement costs and compliance with state and federal regulations. 

Increasing Costs of Capital Infrastructure Replacements and System Maintenance: The cost of equipment and construction is rising, and we’re still experiencing the impacts of supply chain issues. When needed, we replace and rehabilitate aging systems, or install new pipelines, pump stations, tanks and wells. TDPUD’s Board has adopted a Capital Improvement Plan that outlines high-need projects to address aging infrastructure, in order to ensure TDPUD can reliably serve its customers. 

Compliance with State and Federal Regulations: There are a number of “unfunded mandates” TDPUD must comply with, meaning that there are regulations that are imposed on public water systems that we have to foot the bill for. TDPUD invests in technologies, testing and staff to ensure compliance and deliver high-quality water that meets all state and federal standards. This includes investments in water testing, leak detection and conservation as well as wildfire system hardening. 

Yes. These proposed rate increases are based on the recent cost of service study compiled by HDR, an independent, experienced consultant hired by TDPUD. Click here to view the 2025 Water Rate Study.

Note: See page 80 of the linked PDF for examples of how the proposed rate increase will impact residential base charges and commodity charges, and page 82 for the impacts to pump zone charges.

A significant portion of TDPUD’s potable water system was constructed between 1965-1975. While TDPUD has made significant investments into pipeline and pump station replacements, there are portions of TDPUD’s infrastructure that are approaching or have exceeded their useful life. TDPUD adopts multi-year Capital Improvement Plans, in order to plan that work over time and minimize the financial impact to rate payers. 

Delaying this work will save money in the short term, but it will likely lead to higher costs later on. 

One of the water utility’s biggest variable costs is energy, and it takes a lot of energy to pump water uphill. Therefore, it costs more to serve customers at higher elevations. TDPUD splits the community into pump zones based on elevation. This makes this cost equitable, so people who live at lower elevations aren’t subsidizing the cost it takes to serve higher elevation homes. 

As documented in the HDR cost of service study, approximately 85% of your bill is a fixed charge. This charge covers capital infrastructure projects, operational costs, system maintenance and regulatory compliance. Fixed charges are standard on water bills and are determined by the size of your meter. 

All customers have to pay for the water system to be functional and be properly maintained. You are paying for the system to be ready to serve you when you are using water. 

TDPUD’s water rates are in line with others in the region, and other Tahoe-area water utilities have announced comparable or higher rate increases for the next few years. 

Additionally, TDPUD does not receive any property tax dollars. Some agencies included in the below graph do receive property tax funds, which subsidizes their water rates. 

Our abundant and sustainable water resource does not cancel out the need to invest in our infrastructure, nor does it allow us to refuse compliance with state regulations related to water conservation. The amount of water available to us only helps keep rates in check. The fact that we utilize a groundwater resource rather than a surface water resource does help lower our costs, because we don’t need to build and operate a treatment plant. 

We are governed by a locally-elected board chosen by the community. Board meetings are open to the public, held on the first and third Wednesday of each month. The public is welcome to attend these meetings and share their opinions with the Board either during the public comment period towards the beginning of the meeting (for items not on the agenda), during an item on the agenda, or by submitting a written public comment on our website. Two water rate workshops were held during regular board meetings over the past two months, as well as two budget workshops. 

In California, water rates are subject to Proposition 218. For this process specifically, parcel owners have the opportunity to protest or object to the proposed rates. Information on how to do this is included in the mailer that was sent in September to all parcel owners who receive TDPUD water service. Click here to access that mailer, called "Notice of Public Hearing: Proposed Water Rate Increases for 2026-2030."

Truckee Donner PUD demonstrates efficient spending because it prioritizes transparency and responsible management at every level. Oversight comes from a locally-elected Board of Directors, which reviews and approves TDPUD’s budget and capital projects. TDPUD staff follow’s the board’s direction, while the board remains accountable to the community through open public meetings and your participation as a voter. This ensures every financial decision is community-guided and openly reviewed, so resources are invested wisely where they matter most. 

TDPUD’s budget and rate processes are transparent and provide ample opportunity for public comment. Prior to a budget or rate adoption, workshops are held at regularly scheduled board meetings, to allow the public to understand the rate- and budget-setting processes. The public is welcome to attend these meetings, and there are opportunities at these meetings for the public to make comment on items on the agenda, or even general items they want to address before the Board of Directors. If you cannot attend in person, these meetings are livestreamed on YouTube, and recordings of past meetings can also be found on the TDPUD YouTube page. For more information on board meetings, visit tdpud.org/boardmeetings. 

TDPUD strives to balance customer rate affordability with its fiduciary responsibility to ensure reliable and safe water service to the entire community, in alignment with TDPUD’s mission and strategic goals.  

During the Proposition 218 Process, which TDPUD completed in Fall 2025, water customers could submit a protest in writing to TDPUD. This could've be done via email (send to publiccomment@tdpud.org), dropped off in person to our office at 11570 Donner Pass Rd. or mailed to 11570 Donner Pass Rd., Truckee, CA 96161.  

Written protests must include the service address or assessor’s parcel number (APN), the name of the person protesting, signature of the person protesting and clearly state that it constitutes a protest of the proposed new rates. Protests could be submitted by either the homeowner or a tenant of any property serviced by the TDPUD water utility, but only one protest per parcel or service address could be submitted. Protests needed to be received by the close of the public hearing on November 19, 2025. 

If a majority of property owners and/or the tenants of the property whose property receives water service had filed valid written protests prior to the close of the public hearing on November 19, 2025, the proposed water rates would not have been approved. 

More information can be found in the mailer that was sent to all parcel owners who receive TDPUD water service. Click here to access that mailer, called "Notice of Public Hearing: Proposed Water Rate Increases for 2026-2030."

If you disagree with the water rate increase and want to express that you don’t want it adopted, you can file a protest. If you think that TDPUD did not comply with state law in this water rate process and wish to preserve the ability to legally challenge the proposed rates, then you must file an objection. 

As described above, a protest requires the customer to submit a simple written protest, which can be done via email. An objection must be submitted with a specific form, which can be accessed here. Objections require a wet signature and must be mailed or hand-delivered to the TDPUD office by 5pm on November 7, 2025. 

More information can be found in the mailer that was sent to all parcel owners who receive TDPUD water service. Click here to access that mailer, called "Notice of Public Hearing: Proposed Water Rate Increases for 2026-2030."

TDPUD adopted an annual increase of 5% each year for 2026 to and 2027. This represents the average increase across all customer classes. These rate increases were based on an updated cost of service study conducted by HDR which was used to propose rates to ensure that we can maintain our system and deliver reliable service, in a way that is equitable for our rate payers. Click the links below to read and download these documents.

• HDR electric COSA and rate study
• HDR presentation at Sept. 17 board meeting

For the voluntary Residential Time-of-Use (TOU) rate, based on the cost of service analysis and rate analysis, the TOU rate increase averages 6% for 2026 and 5% for 2027.

TDPUD adopted two new electric rates for 2026: Customer Generator (Net Energy Metering) rate and a Commercial Electric Vehicle Charger rate.

Customer Generator Rate

The Customer Generator rate will replace the current rooftop solar rate required by California Senate Bill 1 (SB 1). The Customer Generator rates apply to new solar generating accounts effective January 1, 2026. Existing customer solar accounts are not required to transfer to the new rate. The Customer Generator rate has a higher monthly fixed customer charge to reflect the fixed costs of the electric distribution system used by both solar and non-solar customers. The rate also incorporates time-of-use for both when customers provide power to TDPUD and when customers take power from TDPUD. The Customer Generator rate was extensively analyzed based on cost of service and electric resources, and was designed to be equitable to all TDPUD customers.

Commercial Electric Vehicle Charger Rate

Based on the cost of service analysis, including load profile, the new Commercial Electric Vehicle Charger rate is needed to address a new class of commercial electric customer that is characterized by a unique load profile and high customer demand (KW) associated with electric vehicle charging. The Commercial Electric Vehicle rate incorporates time-of-use to reflect the varying cost of electric resources through out the day along with customer impacts to the electric distribution system. The new rate will take effect January 1, 2026. All commercial electric vehicle charging customers will be transferred to the new rate.  The new commercial electric vehicle charging rate is not applicable to residential EV chargers.

Click here to access the final board documents for electric rate and budget public hearings.

Our electric rates are in alignment with the average rates of regional public utilities in California and below the Investor Owned Utilities (IOUs). In addition, the proposed average 5% rate increases for 2026 and for 2027 are well below other electric utility rate increases. For most residential customers, the average monthly bill based on 800 kWh will increase by around $10/month.

Additionally, the IOU rate increases listed in the below table only include approved rate increases by the California Public Utility Commission. Both Liberty Utilities and PG&E have significant rate cases pending with the CPUC.

TDPUD strives to stay true to its mission of balancing high-quality, reliable service with affordability. We understand this is a difficult financial time for many in our community, and across the country. We do not want to add to the burden.  At the same time, we can’t be shortsighted, and we need to operate our utility in a way that ensures resiliency and reliability. We accomplish this through investments in projects that benefit our community and strengthen our infrastructure. But it’s important to note that some of the biggest increases in our budget are fixed costs driven by economic and market volatility that we have little control over.

One of the most effective ways for customers to save money on their electric bills is by reducing their energy usage through conservation and efficiency. Visit tdpud.org/wintertips for advice on how to save energy in colder months, and go to tdpud.org/rebate to learn about the rebate programs we offer for energy efficient upgrades to your home.

The next step for customers would be to consider enrolling in our new time-of-use rate. This program charges customers a lower rate for using energy during off-peak hours, but charges more for energy use during peak times. This rate is best for customers who are able to shift the bulk of their energy usage to off-peak times.

As part of our ongoing commitment to providing reliable and high-quality water services, Truckee Donner  Public Utility District has determined the need for a water utility rate increase. This is necessary to  address the increasing cost associated with the operation and maintenance of a public water system, as well as the construction of new and replacement water utility infrastructure identified in the District’s 10-year Capital Improvement Plan.

TDPUD engaged HDR Engineering, Inc. to complete a water rate study. The HDR 2025 Water Rate Study is the written basis for and supports the proposed rate increases, and the District’s Board of Directors has accepted the study results. The Board is considering the proposed rate changes as outlined in the below documents.

Notice is hereby given that the Board of Directors of the Truckee Donner Public Utility District is considering the proposed water rate increases for 2026–2030. The District Board of Directors will hold a public hearing and receive public comment on Wednesday, Nov. 19 at 6pm at the TDPUD office, located at 11570 Donner Pass Rd, Truckee, California.

Review the following documents to learn more:

Notice of Public Hearing: Proposed Water Rate Increases for 2026-2030

2025 Water Rate Study

Prop 218 Written Objection Form

What is a time-of-use rate?

The optional time-of-use rate is a way to give customers control of their energy costs by incentivizing energy use outside of the peak times when energy costs the most to procure. TDPUD sees its peak energy usage during the winter, on weekends and at nighttime, from 4 to 9 p.m. This demand dictates what kind of electricity TDPUD needs to buy, and electricity purchased during peak times is almost always more expensive.

The TOU rate is another way for customers to change their behavior to use electricity at off-peak times when it is less expensive (and most often cleaner). The optional TOU rate provides a peak rate that reflects the higher costs during that period and a reduced rate for the lower costs during the off-peak period.

When will a time-of-use rate be available to customers?

We are currently creating this new rate in our system, which will take time since it’s the first time we have offered this sort of rate structure. We expect to be ready to enroll customers in a time-of-use rate in mid-2024.

How do I know if a time-of-use rate is right for my household?

We are developing tools to help customers analyze their current electric usage and compare how a time-of-use rate would affect their bill. We will announce these tools when they are ready.

Standby charges have been assessed on vacant parcels in TDPUD's territory since 1975. These annual charges recoup TDPUD's operating and maintenance costs of the electric and water distribution facilities from parcel owners, who benefit from their vacant lot being in close proximity to the distribution facilities.

Electric Standby Charge

The current electric standby charge applies to vacant parcels with a TDPUD electric distribution line installed along an easement or along a public road or right of way, within 200 feet of the nearest exterior boundary line of any such parcel. The electric standby charge is $20 per year for each parcel 1 acre or larger, or $10 per year for each parcel less than 1 acre.

Water Standby Charge