HomeMy WebLinkAboutStaff Report 2504-4520CITY OF PALO ALTO
Finance Committee
Regular Meeting
Tuesday, September 16, 2025
Agenda Item
2.Recommendation to the City Council to Adopt a Resolution Amending Utilities
Connection Fees and Service Charges in Utilities Rate Schedules E-15 (Electric Service
Connection Charges), W-5 (Water Service Connection Charges), G-5 (Gas Service
Connection Charges), S-5 (Wastewater Service Connection Charges) and C-1 (Utility
Miscellaneous Charges), and to Approve Corresponding Budget Appropriation Revisions
for FY 2026. CEQA status: Not a Project. Staff Presentation
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Finance Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Utilities
Meeting Date: September 16, 2025
Report #:2504-4520
TITLE
Recommendation to the City Council to Adopt a Resolution Amending Utilities Connection Fees
and Service Charges in Utilities Rate Schedules E-15 (Electric Service Connection Charges), W-5
(Water Service Connection Charges), G-5 (Gas Service Connection Charges), S-5 (Wastewater
Service Connection Charges) and C-1 (Utility Miscellaneous Charges), and to Approve
Corresponding Budget Appropriation Revisions for FY 2026. CEQA status: Not a Project.
RECOMMENDATION
Staff requests that the Finance Committee recommend that the City Council adopt a resolution
(Attachment A) amending five Utilities rate schedules which set forth charges for utility
connection charges and service call fees, effective January 1, 2026, and including an annual
increase based on the California Construction Cost Index (CCCI) in fiscal years when a cost of
service study is not performed:
a. E-15 (Electric Service Connection Charges),
b. W-5 (Water Service Connection Charges),
c. G-5 (Gas Service Connection Charges),
d. S-5 (Wastewater Service Connection Charges), and
a. C-1 (Utility Miscellaneous Charges).
EXECUTIVE SUMMARY
The Utilities Department has completed a comprehensive update of its service connection and
service call charges for electric, gas, water, and wastewater services. These revised fees are
designed to recover the full cost of installation, engineering, inspection, equipment, and labor
for standard projects—including new installations, upgrades, relocations, and abandonments.
Non-standard projects will continue requiring a customized work estimate prepared by the
Engineering Divisions.
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The last full cost-of-service study for electric and gas services was conducted in 2019 (Staff Report
#103131), rates have not been changed since that time. Material costs, labor rates, off hauling
costs, and job complexity have increased substantially. As part of the 2025 update, staff
modernized the cost model to improve accuracy and ensure scalability for future fee
adjustments. Beginning in FY 2027, utility connection and service-related fees will be
incorporated into the City’s municipal fee schedule for annual updates. In years without a formal
cost-of-service study, adjustments will follow the California Construction Cost Index (CCCI) as
published by the California Department of General Services (DGS)2. These actions are intended
to alleviate the large increases as recommended in this report in the future.
•Increased labor costs and updated time estimates based on actual field data;
•Rising material and disposal expenses, particularly for sand, concrete, rock, and landfill
haul-away;
•Updated construction standards and regulatory compliance requirements;
•Addition of previously unaccounted services
BACKGROUND
1 Council Meeting June 24, 2019, Item 34: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-
minutes-reports/reports/city-manager-reports-cmrs/year-archive/2019/id-10313-mini-packet-61319.pdf
2 California Construction Cost Index by DGS website: https://www.dgs.ca.gov/RESD/Resources/Page-Content/Real-
Estate-Services-Division-Resources-List-Folder/DGS-California-Construction-Cost-Index-CCCI
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These non-standard projects require a customized cost estimate, prepared by engineering staff
and approved by engineering managers.
ANALYSIS
Rate Schedule E-15 (Electric Service Connection Charge) -
(Table 1 and Attachment B)
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decreased due to fewer hours being required of typical temporary power services. The updated
fee is applicable to 200 amp single-phase temporary power services within 50-feet of a suitable
secondary system (adequate size and capacity to serve the temporary load). For larger temporary
services, or three-phase temporary services, a specific engineering estimate will be developed to
recover the City’s cost to provide these services.
Table 1 - Summary of Electric Common Connection Fee Changes
Type of Service Current Proposed Changes (%)
Underground 200 Amps, Single-Phase $1,040 $3,940 177.5%
Underground 400 Amps, Single-Phase N/A $4,360 NEW
Overhead 200 Amps, Single-Phase $1,040 $2,910 179.8%
Overhead 400 Amps, Single-Phase N/A $3,540 NEW
Temporary Power - Overhead 200A or less $1,190 $1,040 -12.6%
Temporary Power - Underground 200A or less $1,190 $1,060 -10.9%
Rate Schedule G-5 (Gas Service Connection Charges) - (Table 2 and Attachment C)
Table 2 – Summary of Common Gas Service Connection Fees
Type of Service Current Proposed Changes (%)
Plan review for new/remodel commercial building $2,557 $3,536 38%
Install 1" PE gas service connection $5,892 $8,636 47%
Additional pipe for new gas svc 1"-2"$52/ft $69/ft 34%
Gas service pe riser relocation $1,920 $2,791 45%
Add gas meter (up to 630) with existing svc $1,412 $1,585 12%
400 cfh gas meter charge installation $1,191 $1,457 22%
630 cfh gas meter charge installation $1,602 $1,969 23%
Demolition of gas services 1”-2”N/A $6,092 New
Rate Schedule W-5 (Water Service Connection Charges) - (Table 3 and Attachment D)
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The revised water connection and meter installation fees reflect increased labor and material
costs, extended installation durations, and enhanced engineering requirements. Abandonment
and inspection costs have also risen due to updated construction standards. For connection fees
increasing more than 60%, such as the installation of 2” water service connect, the increase is
primarily due to adding cost-recovery for rising haul-away costs of materials such as sand,
concrete, and rock.
Table 3 – Summary of Common Water Service Connection Fees
Type of Service Current Proposed Changes (%)
Plan review for new /remodel single family residence N/A $635 NEW
Plan review for new/remodel commercial building $3,369 $4,653 32%
1” Copper water service N/A $10,773 NEW
2” Copper water service N/A $11,965 NEW
Install 2" water service connection $7,671 $12,236 60%
Install 8" water service connection $13,170 $19,482 48%
1" water meter installation charge $1,002 $1,318 32%
2" water meter installation charge $1,945 $2,726 40%
3” water meter installation charge N/A $4,478 NEW
Add 2 water meter manifold 1"-2" service $868 $1,037 19%
Abandonment of 3/4"-2" water service $3,341 $6,593 97%
Abandonment of 3"-8" water service $4,439 $8,991 103%
Rate Schedule S-5 (Wastewater Service Connection Charges) - (Table 4 and Attachment E)
Table 4 - Summary of Common Wastewater Service Connection Fees
Type of Service Current Proposed Changes (%)
Plan review for new/remodel commercial building $2,547 $3,520 38%
Install 4" sewer lateral depth up to 6'$8,559 $15,615 82%
Install 6" sewer lateral depth up to 6' $9,846 $17,478 78%
Rehabilitate existing 4" - 6" sewer lateral $5,861 $9,694 65%
Abandonment of 4" or 6" lateral $3,261 $5,142 58%
Eng/inspection sewer lateral installation by other $2,564 $3,508 37%
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Eng/inspection abandon sewer lateral by other $1,603 $2,192 37%
Core drill and manhole connection 8” shallow N/A $5,488 NEW
Core drill and manhole connection 8” deep N/A $6,435 NEW
Utility Miscellaneous Charges (Utility Rate Schedule C-1) - (Attachment F)
Updates to Service charges
Utility Rate Schedule C-1 covers flat rate charges for service calls related to service disconnection
and restoration for non-payment, plus standalone engineering and inspection services. In
addition to the flat rate charges for service calls, Utility hourly labor rates have been revised to
reflect updated labor, benefits and overhead costs. The proposed C-1 hourly labor rate is
increasing by 36% (an average increase of 6% annually) from $152 to $207 for miscellaneous
services during regular business hours. The C-1 hourly rate was last updated in 2019.
Equipment charges
To recover costs associated with vehicles and equipment used during the repair resulting from
third-party damage, or other work performed at the request of the customer. Staff recommends
applying the Caltrans Equipment Rental Rates and Labor Surcharge schedule3 for equal or
comparable City equipment. These equipment rental fees would help offset the expenses for
service and maintenance, which have not been previously billed. Commonly used equipment
involved includes the FSR Van, Service Truck, Backhoe, Dump Truck, and Hydro Excavator.
New cross-connection fees (Table 5)
Staff recommends implementing non-compliance, inspection, and testing charges related to the
City's Cross-Connection Control Program. This program is mandated by the California Health and
Safety Code and the State's newly adopted Cross-Connection Control Policy. Its purpose is to
ensure that backflow prevention assemblies are installed correctly, tested annually, and
maintained as necessary to protect the public drinking water supply. To meet these
responsibilities, the City must monitor compliance, track annual test results, and follow up on
any overdue or failed tests.
The proposed fees are intended to offset the labor and administrative costs associated with
managing non-compliance, including field inspections, testing, reporting, scheduling, and
collections. These charges would apply only when the City must take additional action due to a
customer’s failure to meet program requirements—such as missing testing deadlines, failing to
submit passing test results, or not responding to official notices. This approach promotes fair cost
3 Caltrans Equipment Rental Rates website: https://dot.ca.gov/programs/construction/equipment-rental-rates-
and-labor-surcharge
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recovery, supports the long-term sustainability of the program, and ensures that compliant
customers are not unfairly burdened by the added costs of non-compliant accounts.
Table 5 – Summary of proposed cross-connection non-compliance fees
New Cross-Connection Control Non-Compliance Fees Per Unit
1.Delinquency Backflow Non-compliance Administration & Processing Fee $57.00
2.Test/certify 1/2”- 16" Reduced Pressure Principal Assemblies (RPPA); Double
Check Valve Assemblies (DC); and Pressure Vacuum Breaker Assemblies (PVB)
$310.00
3.Test/certify 2"- 16” Fire Service Reduced Pressure Principal Detector
Assemblies (RPDA); Double Check Detector Assemblies (DCDA)
$517.50
FISCAL/RESOURCE IMPACT
July 1 st. Staff anticipates adding all utilities connection fees to the municipal
fee schedule beginning in FY 2027.
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but those fees were for material only. The rates set by the Utilities Department includes labor,
materials, off-hauling, and overhead charges. Setting these fees for standard activities provides
greater transparency for customers planning infrastructure changes versus always relying on
individual charge calculations per project.
STAKEHOLDER ENGAGEMENT
Public Noticing
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
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NOT YET APPROVED Attachment A
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027082025
Resolution No. _________
Resolution of the Council of the City of Palo Alto Amending Connection and Capacity
Fees for the Electric, Water, Gas, and Wastewater Utilities, and Amending Miscellaneous
Utility Charges (Utility Rate Schedules E-15, G-5, W-5, S-5, And C-1)
R E C I T A L S
A. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of
the City of Palo Alto may by resolution adopt rules and regulations governing
utility services, fees and charges.
B. On Month Day, 2025, at a noticed public hearing, the City Council heard and
approved the proposed amendments to utility connection and capacity fees,
and miscellaneous utility charges.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utility Rate Schedule E-15 (Electric Service Connection Charges) is hereby amended to
read as attached and incorporated. Utility Rate Schedule E-15, as amended, shall
become effective January 1, 2026.
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utility Rate Schedule G-5 (Gas Service Connection Charges) is hereby amended to read
as attached and incorporated. Utility Rate Schedule G-5, as amended, shall become
effective January 1, 2026.
SECTION 3. Pursuant to section 12.20.010 of the Palo Alto Municipal Code,
Utility Rate Schedule W-5 (Water Service Connection Charges) is hereby amended to
read as attached and incorporated. Utility Rate Schedule W-5, as amended, shall
become effective January 1, 2026.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utility Rate Schedule S-5 (Wastewater Service Connection Charges) is hereby amended
to read as attached and incorporated. Utility Rate Schedule S-5, as amended, shall
become effective January 1, 2026.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utility Rate Schedule C-1 (Utility Miscellaneous Charges) is hereby amended to read as
attached and incorporated. Utility Rate Schedule C-1, as amended, shall become
effective January 1, 2026.
SECTION 6. The Council finds that the revenue derived from the adoption of
this resolution shall be used only for the purpose set forth in Article VII, Section 2, of the
Charter of the City of Palo Alto.
NOT YET APPROVED Attachment A
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027082025
SECTION 7. The Council finds that the fees and charges adopted by this
resolution are charges imposed for a specific government service or product provided
directly to the payor that are not provided to those not charged, and do not exceed the
reasonable costs to the City of providing the service or product.
SECTION 8. Council finds that the adoption of this resolution is statutorily
exempt from the California Environmental Quality Act (CEQA), pursuant to California
Code of Regulations Title 14, Chapter 3, Section 15273(a), because the fees and charges
proposed are necessary to recover the cost of providing utility service and meet
operating expenses. After reviewing the report presented, the Council incorporates
these documents herein and finds that sufficient evidence has been presented setting
forth with specificity the basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
Assistant City Attorney
Director of Administrative Services
NOT YET APPROVED Attachment A
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027082025
Attachments:
Utility Rate Schedule E-15
Utility Rate Schedule G-5
Utility Rate Schedule W-5
Utility Rate Schedule S-5
Utility Rate Schedule C-1
ELECTRIC SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE E-15
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 0101-01-260
Supersedes Sheet No. E-15-1 dated 01-01-209-01-19 Sheet No.E-15-1
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A. APPLICABILITY:
This Rate Schedule applies to all connections, interconnections, expansions, and upgrades to
the City's Electric Distribution System, except connections that serve street lighting or traffic
signals.
This Rate Schedule applies anywhere the City of Palo Alto provides Electric Service.
All Charges must be pre-paid by the Applicant prior to the scheduling of any construction or
connections to the City's Electrical Distribution System.
The Applicant must pay all Advance Engineering Fees to start the engineering process which
are non-refundable. The Advance Engineering Fees will be credited against the estimated job
cost prior to the collection of construction fees. For Service connections that do not require a
job estimate, CPAU will not require Advance Engineering Fees.
(A) Service Connection Charges:
Service Connection Charges are required when the City connects any Customer to
the City’s electrical Distribution System. A one-time waiver of this fee may be
granted for Services connected during the construction of an underground conversion
district.
(1) Residential - Single Familyservice, single phase, 200 and 400 amp services
that do not require customer contribution for transformer upgrades.
These fees apply to a development in which Electric Metering will be on a single-
family service basis .
(a) For a 250 volt maximum, 200 amp or less service .............$1,0403,940.00
ELECTRIC SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE E-15
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 0101-01-260
Supersedes Sheet No. E-15-2 dated 01-01-209-01-19 Sheet No.E-15-2
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(b) For a 250 volt maximum, 400 amp service …………………
$4,360.00 any connection requiring greater capacity the fee shall be
CPAU’s estimate of the installation cost or $1040, whichever is
greater.
(c) For a 250 volt maximum, 200 amp max service from a rear easement the
fee shall be CPAU’s estimate of the installation costs
.................................................................................. $2,330
(d) For any rear easement connection requiring greater capacity, the fee shall
be CPAU’s estimate of the installation cost or $2330, whichever is greater.
(2) Commercial/Industrial
These fees apply to commercial, industrial, and multi-family residential services.
(a) For a 250 volt maximum, 200 amp or less service shall be CPAU’s estimate
of the installation costs. ....................................................................$1,420
(b) For any connection requiring greater capacity, the fee shall be CPAU’s
estimate of the installation costs or $1420, whichever is greater.
(B) On-site Distribution System Charges:
Where CPAU installs or will install the underground conductors (primary or
secondary), switches or transformers in and on facilities provided by the developer
within the boundaries of a sub-division or other development, an on-site distribution
system fee shall be charged, based on CPAU’s estimate of all applicable installation
costs.
(C) Off-Site Distribution System Charges:
Where CPAU installs or will install an Electric Distribution system, system
extension, or system reinforcement outside the boundaries of a sub-division or other
development to be served, an off-site distribution system fee shall apply, based on
CPAU’s estimate of all applicable installation costs.
3. OVERHEAD SYSTEMS
Connection Charges shall apply for all new single-phase Services or Service upgrades
exceeding 2400 amps or less.
(A) Overhead Service Connection Replacement Charges:
ELECTRIC SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE E-15
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 0101-01-260
Supersedes Sheet No. E-15-3 dated 01-01-209-01-19 Sheet No.E-15-3
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(1) Residential – Single Familyservice, single phase, for 200 amps and 400 amps
services that do not require customer contribution to transformer upgrades.
These fees apply to development in which Electric Metering will be on a single-
family service basis.
(a) For a 250 volt maximum, 200 amp or less, 3 and 4 wire services,
100 feet in length maximum services, and mid-span connection
............................................................................................$1,0402,910.00
(b) For a 250 volt maximum, 4200 amp or less, 3 and 4 wire
services,
100 feet in length maximum services, mid-span connection
$2,3703,540.00
(c) For all other connections, the fee shall be CPAU’s estimate of the
installation cost or $1040, whichever is greater.
(2) Commercial/Industrial
These fees apply to cCharges for commercial, industrial, multi-family
residential Services shall be based on CPAU’s estimate of applicable
costs.
(a) For a 250 volt maximum, 200 amp or less, 3 and 4 wire services,
100 feet in length maximum service ..............................................$1,440
(b) For all others the fee shall be CPAU’s estimate of the installation cost or
$1440, whichever is greater.
(3) Charges for replacement of Overhead Services not described above, shall be
based on CPAU’s estimate of applicable costs.
4. TEMPORARY SERVICE
(A) Overhead Temporary Service Charges:
(1) For a 250 volt, 200 amp or less, 3 wire service,
100 feet in length maximum service .........................................$1,1901,040.00
(2) Fees for a Temporary Service of greater length and capacity or voltage shall be
based on CPAU’s estimate of all applicable installation and removal costs, or
$1,040.001,190, whichever is greater.
ELECTRIC SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE E-15
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 0101-01-260
Supersedes Sheet No. E-15-4 dated 01-01-209-01-19 Sheet No.E-15-4
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(B) Underground Temporary Service Charges:
(1) For a 250 volt, 200 amp or less, 3-wire maximum service,
If a Service box is available at the property .............................$1,1901,060.00
(2) If a Service box is not available at the property, the Customer will be
responsible for fees to provide a Service box.
(3) Fees for a Temporary Service of greater length and capacity or Voltage shall be
based on CPAU’s estimate of the installation and removal costs, or
$11901,060.00, whichever is greater.
5. GENERATOR INTERCONNECTION
CPAU shall charge a fee for evaluation of Generator (Photo Voltaic (PV), Energy Storage
System (ESS)) Interconnection Applications performed pursuant to Rule and Regulation
27.
(A) Advance Engineering Fees:
(1) Projects with a size less than or equal to 10kW in
capacity………………$520.00
(1) Net Energy Metering projects or projects with a size less than or equal to 10
kW taking Service under the Net Energy Metering Successor Program.........$0
(2) All Projects not covered under section 4(A)(1), which are greater than 10 kW
and less than 100 kW in capacity ................................................$8401,140.00
(3) All Projects not covered under section 4(A)(1), which are greater than or equal
to 100 kW and less than 500 kW in capacity ............................$5,5507,560.00
(4) All Projects not covered under section 4(A)(1), which are 500 kW or greater in
capacity .................................................................................$10,70014,500.00
(B) Detailed Study:
Net Energy Metering projects or projects with a size less than or equal to 10 kW taking Service under the
Net Energy Metering Successor Program)....................................................................................$0
ELECTRIC SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE E-15
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 0101-01-260
Supersedes Sheet No. E-15-5 dated 01-01-209-01-19 Sheet No.E-15-5
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Detailed Study fees for all Net Energy Metering Projects not covered under
section 4(B)(1) shall be based on CPAU’s estimate of applicable costs.
(C) Interconnection Review Charges:
Net Energy Metering projects or projects taking Service under the Net Energy
Metering Successor Program).........................................................................$0
(1) All projects less than or equal to 10 kW not under section 4(C)(1)….
..........................................................................................................$152520.00
(2) Interconnection fees for all Projects not covered under section 4(C)(1) or
4(C)(2) will be based on CPAU’s estimate of applicable costs.
6. PALO ALTO CLEAN LOCAL ENERGY ACCESSIBLE NOW PROGRAM
Meter maintenance and administrative service Charge for Generators participating in the
Palo Alto Clean Local Energy Accessible Now (CLEAN) Program..............$34.73207.00
DG. CREDITS:
Rebates or credits may be available to defray electric service connection chargers, if the service
upgrade is a result of higher electrical loads caused by electric vehicle charging. For additional
information visit: https://www.paloalto.gov/Departments/Utilities
https://www.cityofpaloalto.org/gov/depts/utl/ or call 650-329-2241.
EH. NOTES:
1. These Charges apply to all vacant land except where the Charges are recorded as previously
paid.
2. CPAU can generally provide service availability from 30 to 45 days after all Charges are
paid except when long lead-time equipment or materials are required. Consult the City for
estimated lead-times.
3.All fees and minimum charges are subject to DGS California Construction Cost Index
(CCCI) adjustments, to be applied annually effective on July 1.
ELECTRIC SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE E-15
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 0101-01-260
Supersedes Sheet No. E-15-6 dated 01-01-209-01-19 Sheet No.E-15-6
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3.4. CPAU is not responsible for delays in Service connection caused by conditions beyond its
control, including, but not limited to, delays in the arrival of equipment such as
transformers, switches and cable.
{End}
GAS SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE G-5
Sheet No. G-5-1
Effective 09-01-201901-01-2026
Supersedes Sheet No.G-5-1
dated 05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
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A. TERRITORY:
This Rate Schedule applies everywhere the City of Palo Alto provides Gas Service.
B. CHARGES:
Customer must pay plan review and connection fees in full prior to scheduling any Utility
construction work or inspections. CPAU will mail send invoices to the responsible party listed on
the Service application. All invoices are valid for 90 days from date of issuance. Once CPAU
receives full payment, determines that all applicable Service requirements are met, and the Utilities
Inspector determines that the project is ready for utility installation, CPAU Water, -Gas, and-
Wastewater Utilities Operations (WGW Operations) staff will schedule the project for construction.
Depending on material availability and scheduling constraints, Utility Services are generally
installed 60 to 90 days later. While CPAU staff makes best efforts to install Services as planned,
construction delays may occur as a result of unforeseen conditions. Contact WGW Operations for
scheduling lead-time.
Regular CPAU work hours are 8 AM to 5 PM, Monday through Friday, excluding legal City
holidays. Any work the City deems necessary to be performed during non-regular work hours shall
be charged at the overtime rate per Utility Rate Schedule Rate C-1. Conditions in which work may
need to be performed during non-regular work hours may include, but are not limited to, performing
work on arterial streets, in business districts, in front of major commercial establishments, and near
schools.
1. COMMERCIAL PLAN REVIEW:
New commercial building or remodeling permit valuation greater than $200,000
...........................................................................................................................................$2,557.003
,536.00
New subdivision residential unit
.......................................................................................................................................$379.00520.0
0/unit
System extension of 2-inch polyethylene (PE) Gas main
.............................................................................................................................................$13.0020.
00/ft
2. RESIDENTIAL PLAN REVIEW:
New single-family residential (SFR) building or SFR remodeling permit valuation greater than
$100,000
GAS SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE G-5
Sheet No. G-5-2
Effective 09-01-201901-01-2026
Supersedes Sheet No.G-5-2
dated 05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
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..............................................................................................................................................$924.001
,270.00
3.DISTRIBUTION SYSTEM EXTENSIONDESIGN:
Charge per linear footGas system design .........................................................................$205.00
/ftUtility Estimate
4. DISTRIBUTION SYSTEM EXTENSION:
Charge per linear foot.......................................................................................................$350.00/ft
4.5.CONNECTION FOR SERVICE INSTALLED ON EXISTING MAIN:
Service connection Charges include up to 40 feet of Service Line installation inside the property
line. Service Lines will be installed along the shortest most practical route, as determined by the
Utilities Department (perpendicular from the Gas main in the adjoining street, alley, lane road, or
easement to the nearest suitable Meter location at the building or structure).
Size
1-inch directionally bored connection
........................................................................................................................................$5,892.008
,636.00
2-inch directionally bored connection
........................................................................................................................................$6,999.001
3,439.00
Excess length Charge for directionally bored connection
..........................................................................................................................................$52.0069.0
0 /ft*
1-or 2-inch trenched connection
.......................................................................................................................................$7,126.008
,500.00
2-inch main installation in contractor-provided trench.......................................................$68.00245
/ft
Connections above 2-inches.....................................................................................Utility Estimate
1-or 2-inch excess flow valve (EFV) installation on PE service
.....................................................................................................................................$2,740.006
,713.00
*Excess Length Charge: An additional Charge ($52.0069.00 /foot) will apply to an extension
GAS SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE G-5
Sheet No. G-5-3
Effective 09-01-201901-01-2026
Supersedes Sheet No.G-5-3
dated 05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
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greater than 40 feet from the property line closest to the street, to the Gas Meter location,
measured along a line perpendicular to the street property line.
Replacement of Service connections made necessary because of ordinary wear and deterioration
will be made without Charge. However, if the need for replacement arises due to meeting an
increase in load or relocation of a non- polyethylene (PE) pipe Service, the installation of the
Service will be charged as a new Service.
5. METERS:
250 Cubic Foot Per Hour (CFH) House Meter
............................................................................................................................................$1,012.001
,097.00
250 CFH Curb Meter
............................................................................................................................................$2,124.002
,601.00
400 CFH House Meter
............................................................................................................................................$1,191.001
,457.00
400 CFH Curb Meter
............................................................................................................................................$2,331.002
,782.00
630 CFH House Meter
............................................................................................................................................$1,602.001
,969.00
630 CFH Curb Meter
............................................................................................................................................$2,657.002
,796.00
800 CFH Diaphragm – Commercial House Meter
............................................................................................................................................$1,772.002
,782.00
1000 CFH Diaphragm - Commercial House Meter
............................................................................................................................................$2,213.003
,217.00
1500 CFH Rotary-Commercial House Meter
............................................................................................................................................$2,894.003
,202.00
2000 CFH Rotary-Commercial
............................................................................................................................................$3,924.004
,165.00
GAS SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE G-5
Sheet No. G-5-4
Effective 09-01-201901-01-2026
Supersedes Sheet No.G-5-4
dated 05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
8
6
6
6
GAS SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE G-5
Sheet No. G-5-4
Effective 09-01-201901-01-2026
Supersedes Sheet No.G-5-4
dated 05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
8
6
6
6
3000 CFH Rotary-Commercial
...........................................................................................................................................$3,966.004
,278.00
5000 CFH Rotary-Commercial
...........................................................................................................................................$4,469.004
,827.00
7000 CFH Rotary-Commercial
...........................................................................................................................................$5,174.005
,594.00
11000 CFH Rotary-Commercial
.........................................................................................................................................$12,639.001
5,898.00
16000 CFH Rotary-Commercial
.........................................................................................................................................$13,980.001
8,314.00
23000 CFH Rotary-Commercial
.........................................................................................................................................$16,628.00
Utility Estimate
Electronic Volume Corrector System................................................................................Utility
Estimate$5,808.00
Automatic Meter Reading (AMR) Encoder Receiver Transmitter – Diaphragm Meter
..............................................................................................................................................$205.002
32.00
AMR Encoder Receiver Transmitter – Rotary Meter
..............................................................................................................................................$269.003
24.00
Vent line for Gas Regulator
..............................................................................................................................................$385.004
54.00
2-inch bollard (to protect Gas Meter) installation fee
...........................................................................................................................................$394.005
25.00
4-inch bollard (to protect Gas Meter) installation fee
..............................................................................................................................................$564.008
23.00
Other Meter sizes......................................................................................................Utility Estimate
6. ADDITIONAL METERS ON CONNECTION:
These Charges apply to Meters up to 630 CFH.Charges for Meters above 630 CFH will be
GAS SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE G-5
Sheet No. G-5-5
Effective 09-01-201901-01-2026
Supersedes Sheet No.G-5-5
dated 05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
8
6
6
6
based on the Utilities Department’s estimate.
Per Meter
With new connection
..............................................................................................................................................$578.006
48.00
On existing Metered connection
...........................................................................................................................................$1,412.001
,585.00
7. SERVICE RELOCATION:
Service riser relocation
...........................................................................................................................................$1,920.002
,791.00
Service riser relocations will only be performed on 1-inch and larger polyethylene (PE) pipe
Service Lines that have been approved by Utilities Department. All Service Lines made of non-
PE materials must be replaced from the main to the Meter at the Charges listed in Section B(64)
of this Rate Schedule.
Curb Meter- Riser relocation on existing 1-inch PE pipe
............................................................................................................................................$1,026.001
,337.00
Curb Meter- New Service from main to house
............................................................................................................................................$2,946.003
,887.00
8. RELOCATION OF FACILITIES:
Approved relocation of Service Lines and other facilities will be done at the cost of the
Applicant. Payment of estimated costs is required before relocation work begins.
9. TAPPING THE GAS MAIN FOR CONTRACTOR-INSTALLED SERVICES:
Tap Gas main for 1- to 2-inch Service
...........................................................................................................................................$1,799.002
,290.00
Tap Gas main for 4- to 6-inch Service
GAS SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE G-5
Sheet No. G-5-6
Effective 09-01-201901-01-2026
Supersedes Sheet No.G-5-6
dated 05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
8
6
6
6
...........................................................................................................................................$2,505.002
,864.00
1. ABANDONMENT OF GAS SERVICES:
1-inch to 2-inch Gas service abandonment ………………………………………………… $6,092
1.2.WORK PERFORMED BY OUTSIDE CONTRACTORS:
Engineering and inspection service Charges per Utility Rate Schedule C-1 will apply to utility
work performed by outside contractors, which may be done only with the prior written approval
of the Utilities Department.
C. NON-STANDARD CONDITIONS:
1. Any condition which, in the opinion of the Engineering Manager, Water-Gas-Wastewater, will
result in a cost higher than the Charges set forth in Section B will be classified as non-standard.
The Charge for a non-standard installation will be based on the Engineering Manager's estimate
of the total costs of all materials, labor, and other costs required to complete the installation.
2. In the event Gas Service to a Premise is requested and insufficient capacity exists to provide such
Service, the Applicant shall bear the total cost for designing and enlarging the Distribution
System to accommodate serving the Applicant. The Engineering Manager, Water-Gas-
Wastewater, may require the Applicant to make arrangements for the design and construction of
said expansion in accordance with applicable CPAU Rules and Regulations, standards and
specifications. Alternatively, CPAU may elect for City staff or contractors to design and install
such facilities at the Applicant's expense. Credit to the Applicant will be provided for any over
sizing or extra facilities installed to meet Service demands above the specific capacity needs of
the Applicant.
D. SPECIAL NOTES:
1. All fees and minimum charges are subject to DGS California Construction Cost Index (CCCI)
adjustments, to be applied annually effective on July 1.
{End}
WATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE W-5
Sheet No. W-5-1
Effective 09-01-201901-01-2026
Supersedes Sheet No. W-5-1
dated 09-01-201905-01-2015
CITY OF PALO ALTO UTILITIES
Issued by the City Council
8
6
6
5
A. TERRITORY:
This Rate Schedule applies anywhere the City of Palo Alto provides Water Service.
B. CHARGES:
Customer must pay plan review and connection fees in full prior to scheduling any Utility construction
work or inspections. The invoice will be mailed sent to the responsible party listed on the Service
application. All Invoices are valid for 90 days from date of issuance. Once CPAU receives full
payment, determines that all applicable Service requirements are met, and the Utilities Inspector
determines that the project is ready for utility installation, CPAU Water, Gas, and Wastewater Utilities
Operations (WGW Operations) staff will schedule the project for construction. Depending on material
availability and scheduling constraints, Utility Services will be installed between 60 and 90 days.
While CPAU staff makes best efforts to install Services as planned, construction delays may occur as
a result of unforeseen conditions. Contact WGW Operations for scheduling lead-time.
Regular CPAU work hours are 8 AM to 5 PM, Monday through Friday, excluding legal City holidays.
Any work the City deems necessary to be performed during non-regular work hours shall be charged
at the overtime rate per Utility Rate Schedule Rate C-1. These conditions include but are not limited
to performing work on arterial streets, in business districts, in front of major commercial
establishments, and near schools.
1. PLAN REVIEW:
New single family residence or residential remodel …………………………………………
$635.00
New commercial building or remodeling permit valuation greater than $200,000...........…
$3,369.004,653.00
New subdivision residential unit
……………………………………………………...$378.00526.00/unit
System extension of 8-inch high-density polyethylene (HDPE) Water main
.............................................................................................................................................$13.0019.
00/ft
2. DESIGN:
Water System Design ………………………………………………………………Utility Estimate
2.3.DISTRIBUTION SYSTEM EXTENSION:
City standard 8-inch main, Charge per linear foot
..............................................................................................................................................$252.003
83.00
WATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE W-5
Sheet No. W-5-2
Effective 09-01-201901-01-2026
Supersedes Sheet No. W-5-2
dated 09-01-201905-01-2015
CITY OF PALO ALTO UTILITIES
Issued by the City Council
8
6
6
5
3. SERVICE CONNECTIONS:
Water Service: Domestic, Irrigation, and Fire
Size Amount
1-inch copper connection ………………………………………………………………$10,773.00
2-inch copper connection ………………………………………………………………$11,965.00
2-inch connection
............................................................................................................................................$7,671.001
2,236.00
4-inch connection
............................................................................................................................................$9,932.001
5,030.00
6-inch connection
..........................................................................................................................................$11,274.001
7,.920.00
8-inch connection
..........................................................................................................................................$13,170.001
9,482.00
10-inch connection
..........................................................................................................................................$14,669.002
1,826.00
Replacement of Service connection made necessary because of ordinary wear and deterioration
will be made without Charge. Replacement due to inadequacy because of additional demand or
load will be charged as a new Service connection.
Additional Domestic or Irrigation Services
For Service installations connecting to a pre-existing Service or installations of a new, larger
Service.
2-inch connection
............................................................................................................................................$3,523.005
,626.00
4-inch connection
............................................................................................................................................$4,663.007
,956.00
WATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE W-5
Sheet No. W-5-3
Effective 09-01-201901-01-2026
Supersedes Sheet No. W-5-3
dated 09-01-201905-01-2015
CITY OF PALO ALTO UTILITIES
Issued by the City Council
8
6
6
5
Combination Domestic or Irrigation Water Service and Fire Service
Combination Water Service connections require CPAU approval. If approved, connection
Charges for both the fire Service and the domestic or irrigation Service connection will apply.
Master Water Service
Connections that serve domestic Water Service and fire protection through a detector Meter require
CPAU approval. Applicable Charges for master Water Service connections will be based on
CPAU’s estimate of the total costs, including materials, labor, metering, and all other costs
required for the installation.
4. METERS:
5/8-inch x 3/4-inch Meter
...............................................................................................................................................$795.001
,193.00
1-inch Meter
........................................................................................................................................$1,002.001
,318.00
1 ½-inch Meter
............................................................................................................................................$1,593.002
,509.00
2-inch Meter
........................................................................................................................................$1,945.002
,726.00
3-inch Meter
…………………………………………………………………………………$4,478.00
4-inch Meter
............................................................................................................................................$6,561.007
,259.00
6-inch Meter
............................................................................................................................................$9,324.009
,805.00
Automatic Meter Reading - AMR Encoder Receiver Transmitter
...............................................................................................................................................$108.002
16.00
WATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE W-5
Sheet No. W-5-4
Effective 09-01-201901-01-2026
Supersedes Sheet No. W-5-4
dated 09-01-201905-01-2015
CITY OF PALO ALTO UTILITIES
Issued by the City Council
8
6
6
5
5. CAPACITY CHARGES:
Capacity Charges apply to new Utility Services and added demand on existing Services.
Domestic:
5/8-inch x 3/4-inch Meter...................................................................................................$3,750.00
1-inch Meter.......................................................................................................................$6,250.00
1 ½-inch Meter.................................................................................................................$18,850.00
2-inch Meter.....................................................................................................................$31,250.00
4-inch Meter and larger........................................................By estimate at $125/fixture unit (FU)*
*These charges vary and are based on the total number of fixture units (FU) estimated for the water
supply demand. Water supply fixture units are estimated per California Uniform Plumbing Code.
Fire Service Capacity Charges:
2-inch.....................................................................................................................................$750.00
4-inch..................................................................................................................................$8,425.00
6-inch................................................................................................................................$18,250.00
8-inch................................................................................................................................$30,950.00
10-inch..............................................................................................................................$48,110.00
If a Customer is upgrading the capacity of an existing Service, then the capacity Charge will be
the difference between the new Service size and the existing Service size.
6. ADDITIONAL METERS:
With new connection, up to 2-inch
...........................................................................................................................................$1,381.001
,823.00
With existing connection, up to 2-inch …………………………………………………….2,463
2 Meter Manifold on 2” PE or 1” CU service
..............................................................................................................................................$868.001
,037.00
7. RELOCATION OF FACILITIES:
The costs of CPAU-approved relocation of Services, hydrants, or other facilities will be the
responsibility of the Applicant. Payment of estimated cost is required before relocation work
begins.
WATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE W-5
Sheet No. W-5-5
Effective 09-01-201901-01-2026
Supersedes Sheet No. W-5-5
dated 09-01-201905-01-2015
CITY OF PALO ALTO UTILITIES
Issued by the City Council
8
6
6
5
8. FIRE HYDRANT:
(A) Install new hydrant without lateral
...................................................................................................................................$3,542.005
,135.00
(B) Install new hydrant with lateral
.................................................................................................................................$15,285.002
4,341.00
(C) Relocation behind curb (up to 5 feet)
...................................................................................................................................$8,585.001
3,518.00
Relocations more than 5 feet will require a new lateral and the existing lateral will be disconnected
and abandoned at the main.
9. TAPPING THE WATER MAIN FOR CONTRACTOR-INSTALLED SERVICES:
(A) Tap Water main for 2-inch Service
...................................................................................................................................$1,929.002
,435.00
(B) Tap Water main for 4-inch Service
...................................................................................................................................$2,539.003
,137.00
(C) Tap Water main for 6-inch Service
...................................................................................................................................$3,852.005
,170.00
(D) Tap Water main for 8-inch Service
...................................................................................................................................$5,244.006
,959.00
10. ABANDONMENT:
(A) Small Service 2-inch and less
...................................................................................................................................$3,341.006
,593.00
(B) Large Service more than 2-inch
...................................................................................................................................$4,439.008
,991.00
11. WORK PERFORMED BY OUTSIDE CONTRACTORS:
Engineering and inspection service Charges per Utility Rate Schedule C-1 will apply to utility
work performed by outside contractors, which may be done only with the prior written approval
WATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE W-5
Sheet No. W-5-6
Effective 09-01-201901-01-2026
Supersedes Sheet No. W-5-6
dated 09-01-201905-01-2015
CITY OF PALO ALTO UTILITIES
Issued by the City Council
8
6
6
5
of the Utilities Department.
(A) Engineering and inspection for new 2-inch Service
...................................................................................................................................$1,923.002
,631.00
(B) Engineering and inspection for new 2-inch Service connected to larger Service
...................................................................................................................................$1,282.001
,754.00
(C) Engineering and inspection for new 4-inch to 8-inch Service
...................................................................................................................................$2,885.003
,946.00
(D) Engineering and inspection for new hydrant and Service
...................................................................................................................................$2,885.003
,946.00
(E) Engineering and inspection for abandonment of 2-inch and smaller Service
......................................................................................................................................$962.001
,315.00
(F) Engineering and inspection for abandonment of 3-inch and larger Service
...................................................................................................................................$1,282.001
,754.00
(G) Engineering and inspection for new 8-inch main (per linear foot)
........................................................................................................................................$32.004
4.00
C.NON-STANDARD CONDITIONS:
1. Any condition which, in the opinion of the Engineering Manager, Water-Gas-Wastewater, will
result in a cost higher than the Charges set forth in Section B will be classified as non-standard.
The Charge for a non-standard installation will be based on the Engineering Manager’s estimate
of the total costs of all materials, labor, and other costs required to complete the installation.
2. If CPAU determines that insufficient capacity exists to provide Water Service to an Applicant,
Applicant will be responsible for the CPAU’s costs to complete a hydraulic system capacity study
to determine whether Distribution System upgrades will be required to serve the Applicant, as well
the costs of completing the upgrades deemed necessary by CPAU.
D. SPECIAL NOTES:
1. All fees and minimum charges are subject to DGS California Construction Cost Index (CCCI)
adjustments, to be applied annually effective on July 1.
{End}
WASTEWATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE S-5
Sheet No. S-5-1
Effective 09-01-2019 01-01-2026Supersedes Sheet No. S-5-1 dated
05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
8
6
6
4
A. TERRITORY:
This Rate Schedule applies anywhere the City of Palo Alto provides Wastewater Service.
B. CHARGES:
Customer must pay plan review and connection fees in full prior to scheduling any Utility construction
work or inspections. CPAU will mail send invoices to the responsible party listed on the Service
application. All Invoices are valid for 90 days from date of issuance. Once CPAU receives full
payment, determines that all applicable Service requirements are met, and the Utilities Inspector
determines that the project is ready for utility installation. CPAU Water, Gas, and Wastewater Utilities
Operations (WGW Operations) staff will schedule the project for construction. Depending on material
availability and scheduling constraints, Utility Services are generally installed between
60 and 90 days later. While CPAU staff makes best efforts to install Services as planned, construction
delays may occur as a result of unforeseen conditions. Contact WGW Operations for scheduling lead-
time.
Regular CPAU work hours are 8 AM to 5 PM, Monday through Friday, excluding legal City holidays.
Any work the City deems necessary to be performed during non-regular work hours shall be charged
at the overtime rate per Utility Rate Schedule Rate C-1. Conditions in which work may need to be
performed during non-regular work hours may include, but are not limited to, performing work on
arterial streets, in business districts, in front of major commercial establishments, and near schools.
1. PLAN REVIEW:
New single family residential building or remodel ………………………………………...
$635.00
New commercial building or remodeling permit valuation greater than $200,000
.........................................................................................................................................$2,547.003
,520.00
New subdivision residential unit
....................................................................................................................................$172.00232.0
0/unit
System extension 8-inch HDPE Wastewater main
..........................................................................................................................................$24.0034.
00/ft
2. DESIGN:
Wastewater system design fee …………………………………………………… Utility Estimate
WASTEWATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE S-5
Sheet No. S-5-2
Effective 09-01-2019 01-01-2026Supersedes Sheet No. S-5-2 dated
05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
8
6
6
4
2. COLLECTION SYSTEM EXTENSIONS:
City standard 8-inch main, Charge per linear foot
........................................................................................................................................$248.00479
.00/ft
3. CONNECTIONS:
4-inch connection, depth at 6 feet and below
.........................................................................................................................................$8,559.001
5,615.00
6-inch connection, depth at 6 feet and below
.........................................................................................................................................$9,846.001
7,478.00
4-inch lateral, depth between 6 feet and 10 feet
.......................................................................................................................................$11,456.002
1,858.00
6-inch lateral, depth between 6 feet and 10 feet
......................................................................................................................................$12,186.002
2,938.00
Rehabilitation of existing lateral by pipe bursting
........................................................................................................................................$5,861.009
,694.00
Connections of sewer laterals over 25 feet in length will be charged for the additional footage at
a rate of $106206/linear foot for 4-inch connections and $110213/linear foot for 6-inch
connections.
Special arrangements must be made for connections larger than 6-inch. CPAU will estimate the
cost which will serve as the basis for a Customer deposit. Upon receipt of this deposit CPAU
will install the connection and the Customer will be responsible for the actual costs that exceed
the deposit amount.
4. REPLACEMENT OR RELOCATION OF FACILITIES:
Replacement of Lateral connections made necessary because of ordinary wear and
deterioration will be made without Charge. Replacement due to inadequacy because of increased
demand or load, relocation due to location will be charged as a new connection.
WASTEWATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE S-5
Sheet No. S-5-3
Effective 09-01-2019 01-01-2026Supersedes Sheet No. S-5-3 dated
05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
8
6
6
4
Costs associated with CPAU-approved relocation of lateral, and other facilities are the
responsibility of the Applicant. Payment of estimated costs is required before relocation work
begins.
5. CAPACITY CHARGES:
4-inch connection with 5/8-inch Water Meter (WM).....................................................$5,250.00
4-inch connection with 1-inch WM..............................................................................$10,500.00
4- or 6-inch connection with 1-1/2-inch WM...............................................................$31,668.00
6-inch connection with 2-inch WM..............................................................................$52,500.00
6-inch and larger connection with 4-inch or larger WM.........................By estimate at $210/FU*
* FU = fixture unit (1 FU = 15 gallons per day).
Capacity upgrades to an existing Lateral will be calculated as the difference between the new
Lateral size and the existing Lateral size.
6. INSTALL AND CORE DRILL MANHOLE:
(A) Depth, 6 feet or less
..............................................................................................................................$12,952.001
8,404.00
(B) Depth, greater than 6 feet
..............................................................................................................................$16,346.002
4,812.00
(C) Core Drill and Connection Tap to Manhole (Shallow) ……………………………...
$5,488.00
(D) Core Drill and Connection Tap to Manhole (Deep) …………………………………
$6,435.00
7. ABANDONMENT AND DEMOLITION:
(A) Sewer Lateral
................................................................................................................................$3,261.005
,142.00
8. INSTALL SEWER CLEANOUT
........................................................................................................................................$2,523.004
,240.00
WASTEWATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE S-5
Sheet No. S-5-4
Effective 09-01-2019 01-01-2026Supersedes Sheet No. S-5-4 dated
05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
8
6
6
4
9. WORK PERFORMED BY OUTSIDE CONTRACTORS:
Engineering and inspection service Charges per Utility Rate Schedule C-1 will apply to utility
work performed by outside contractors, which may be done only with the prior written approval of
the Utilities Department.
(A) Engineering and inspection for new lateral
................................................................................................................................$2,564.003
,508.00
(B) Engineering and inspection for new main (per lineal foot)
.....................................................................................................................................$40.005
5.00
(C) Engineering and inspection for new manhole
................................................................................................................................$3,205.004
,385.00
(D) Engineering and inspection for lateral abandonment
................................................................................................................................$1,603.002
,192.00
C. NON-STANDARD CONDITIONS
1. Any condition which, in the opinion of the Engineering Manager, Water-Gas-Wastewater,
will result in a cost higher than the Charges set forth in Section B will be classified as non-
standard. The Charge for a non-standard installation will be based on the Engineering
Manager’s estimate of the total costs of all materials, labor, and other costs required to
complete the installation.
2. In the event Wastewater Service to a Premise is requested and insufficient capacity exists to
provide such Service, the Applicant shall bear the total cost for flow monitoring the existing
main to determine remaining capacity, design of new sewer main and construction cost for
enlarging the collection system to accommodate serving the Applicant. The Engineering
Manager, Water-Gas-Wastewater may require the Applicant to make arrangements for the
design and construction of said expansion in accordance with applicable CPAU Rules and
Regulations, standards and specifications. Alternatively, CPAU may elect for City staff or
contractors to design and install such facilities at the Applicant’s expense.
3. PUMPING PLANTS:
If the development requires a pumping facility to drain into the City’s Wastewater collection
system, the developer is responsible for the cost of construction of the pumping plant and the on-
going plant operation and maintenance costs.
WASTEWATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE S-5
Sheet No. S-5-5
Effective 09-01-2019 01-01-2026Supersedes Sheet No. S-5-5 dated
05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
8
6
6
4
A. SPECIAL NOTES:
1. All fees and minimum charges are subject to DGS California Construction Cost Index (CCCI)
adjustments, to be applied annually effective on July 1.
{End}
UTILITY MISCELLANEOUS CHARGES
UTILITY RATE SCHEDULE C-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 04/03/2301/01/26
Supersedes Sheet No.C-1-1 dated 09/1/1904/03/23 Sheet No.C-1-1
8
6
6
2
Charges under this Rate Schedule may be either mailed sent to the responsible party in a
form of invoice or added to the regular monthly Utilities bill of the Customer receiving the
Service, and non-payment may result in termination of Service.
Charges During Charges After
Regular Hours1 Regular Hours
A. SERVICE CALLS AND OTHER SERVICE WORK:
1.Setting Electric Meter2 No Charge
$204.00263.00
Disconnection of Service
for non-payment of Utilities Charges $152.00207.00
Not applicable
Restoration of Service following
disconnection for non-payment of Utilities Charges $152.00 $207.00
$204.00 263.00
Restoration of Electric Service at power pole following
disconnection for non-payment of Utilities Charges $390.00304.00
$526.00 408.00
B. LABOR, ENGINEERING AND INSPECTION RATES PER HOUR PER
PERSON:
1. Service provided during regular work hours $152.00 $207.00
Not applicable
2. Service provided on overtime basis where the
overtime is scheduled at the City's convenience. Not applicable
$178.00243.00
3. Service provided on overtime basis where the
overtime is scheduled at the Customer's convenience. Not applicable
$204.00279.00
1 Regular hours are 8am to 5pm, Monday through Friday, excluding legal City holidays.
2 For Water Meters see Utility Rate Schedule W-5, for Gas Meters see Utility Rate Schedule G-5.
UTILITY MISCELLANEOUS CHARGES
UTILITY RATE SCHEDULE C-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 04/03/2301/01/26
Supersedes Sheet No.C-1-1 dated 09/1/1904/03/23 Sheet No.C-1-1
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C. EQUIPMENT CHARGES SeeCPAU will charge the latest published
Caltrans Equipment Rental Rates and Labor Surcharge for equal or comparable City
equipment. See at
https://dot.ca.gove/programs/construction/equipment-rental- r
ates-and-labor-surcharges
D. RETURNED PAYMENTS: See City of Palo Alto Municipal Fee
Schedule.
DE. LATE PAYMENTS: Two percent (2%) of unpaid balance of Utilities
Charges
EF. DEPOSITS:
Customer deposit for Meter accuracy test $0-300.00 Not
applicable
GF. AMI OPT-OUT FEES:
1. Set Up Charge $100.00 Not applicable
2. Monthly $25.00 Not applicable
H. CROSS-CONNECTION CONTROL NON-COMPLIANCE FEES Charge Per
Unit
1. Delinquency Backflow Prevention Assembly Non-Compliance Administrative &
Processing Fee
$57.00
2. Test/certify 1/2”- 16" Reduced Pressure Principle Assemblies (RPPA);
Double Check Valve Assemblies (DCVA);
and Pressure Vacuum Breaker Assemblies (PVB)
$310.00
3. Test/certify 2"- 16” Fire Service Reduced Pressure Principle Assemblies (RPDA);
Fire Service
Double Check Detector Assemblies (DCDA)
$517.50
UTILITY MISCELLANEOUS CHARGES
UTILITY RATE SCHEDULE C-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 04/03/2301/01/26
Supersedes Sheet No.C-1-1 dated 09/1/1904/03/23 Sheet No.C-1-1
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I. SPECIAL NOTES:
1. All fees and minimum charges are subject to California Construction Cost Index
(CCCI) adjustments, to be applied annually effective on July 1.
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UTILITIES CONNECTION FEES AND SERVICE
CHARGES IN UTILITIES RATE SCHEDULES
Update for FY2026
SEPTEMBER 16, 2025 www.paloalto.gov
CONNECTION FEES
•Last updated 2019 (COVID and resource constraints)
•Updated labor hours and activities (i.e. permitting, inspections)
•Rising material costs and disposal expenses
•New cost recovery charges added to C1 rate schedule:
•Equipment fees (Caltrans fee schedule)
•Cross connection fees
•Operational efficiencies and cost savings
•Fees effective January 1, 2026
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SERVICE CONNECTION FEES AND CHARGES
•Cost recovery for work performed by the City for customer connections
•Applicable to construction that require utility connections for:
•New construction
•Upgrades/Remodels
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Rate Schedules # of fees/charges Expected Cost Recovery Percentage increase
E-15 (Electric)6 $190,000 8%
G-5 (Gas)42 $196,000 31%
W-5 (Water)40 $668,000 45%
S-5 (Sewer)20 $169,000 29%
2019 Hourly Rate Proposed Hourly Rate
C-1 (Miscellaneous)14 $152 $207
ELECTRIC RATE SCHEDULE, E-15
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Current Proposed Changes
(%)
Underground 200 Amps, Single-Phase $1,040 $3,940 278%
Underground 400 Amps, Single-Phase New $4,360 New
Overhead 200 Amps, Single-Phase $1,040 $2,910 180%
Overhead 400 Amps, Single-Phase New $3,540 New
Temporary Power - Overhead 200 Amps $1,190 $1,040 -13%
Temporary Power - Underground 200 $1,190 $1,060 -11%
WGW RATE SCHEDULES: G-5 (Gas), W-5 (Water), S-5 (Sewer)
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Utility Current Proposed Changes
Install 1" PE gas service connection Gas $5,892 $8,636 47%
Gas $1,191 $1,457 22%
-2"Gas New $6,092 New
Water New $635 New
Water $7,671 $12,236 60%
Water $1,002 $1,318 32%
Sewer $2,547 $3,520 38%
Sewer $8,559 $15,615 82%
- 6" lateral Sewer $5,861 $9,694 65%
NEW CROSS-CONNECTION FEES
Why Cross Connection Control Matters:
•Existing program mandated by State Water Resource Control Board
•Safeguards community trust by eliminating contamination of City's drinking
water
•Aligns with industry standards
•4,754 devices in the system (growing monthly), 402 non-compliant
C-1 Miscellaneous Charges – H. Cross Connection Control Non-Compliance Fees
1. Delinquency Processing Fee – $57.00
2. Test/Certify Domestic Assemblies – $310.00
3. Test/Certify Fire Service Assemblies – $517.50
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ANNUAL INCREASE
•Public notification including 60 days courtesy for applications in progress
•Fees and charges will be moved to the Municipal Fee Schedule in FY2027
•Apply the annual California Construction Cost Index (CCCI)increase for the years in
between cost-of-service study, effective July 1st
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California Construction Cost Index 2019-2025
Calendar Year 2019 2020 2021 2022 2023 2024 2025*
Annual %3.6%2.8%13.4%9.3%9.4%2.3%4.5%
*Estimate based on Jan-Aug 2025 CCCI
•Finance Committee recommend to Council to approve updating the standard
service connection rate schedules for E-15, G-5, W-5, S-5, and C-1 effective
January 1, 2026
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RECOMMENDATION