🏠 Upgrade Your LADWP Water Account If You Build an ADU or Second Unit

If you’ve added an Accessory Dwelling Unit (ADU), Junior ADU (JADU), guest house, or any second dwelling on your lot, and you have a tenant, it’s vital to update your LADWP account to a multi‑family residential class—but LADWP won’t do this automatically. Many homeowners are surprised to discover they remain on single-family (Schedule A) rates even after renting out an additional unit.

✅ Why Making the Switch Saves You Money

Single-family (Schedule A) accounts are billed under a 4-tier structure, where higher water usage pushes you into expensive Tier 3 and Tier 4 rates. But with a multi‑family account (Schedule B)—for two or more units on one meter—you’re billed under only Tier 1 and Tier 2 rates . These tiers remain lower even as usage rises, significantly reducing your water costs.

💧 How Much You Could Save

• As a single-family user, excess usage costs can skyrocket in Tier 4.
• Under multi-family billing, your usage is capped at Tier 2—even as consumption increases—keeping your cost per hundred cubic feet (HCF) much lower. https://www.ladwp.com/account/customer-service/water-rates/schedule-b-multiple-unit-residential

For example:

• Tier 3/4 water can cost 40–60% more per HCF than Tier 2.
• On a 500 HCF monthly consumption, switching could save hundreds of dollars annually.

📝 What You Need to Do

1. Check your LADWP bill: If it’s still listed under Schedule A despite a second unit being active, you need to update it. 2. Contact LADWP Customer Service (1-800-DIAL DWP) or visit your local branch. 3. Provide documentation showing multiple units (e.g., building permit, Certificate of Occupancy). 4. Request reclassification to Schedule B – Multiple Unit Residential.

Once switched, your account stays at dual-tier rates, regardless of how much water you use.

📜 Official Basis

• Schedule A – Single-Dwelling Residential: Tiered pricing up to Tier 4
• Schedule B – Applies to two or more dwelling units on one meter; capped at Tier 2 rates.

LADWP rate regulations confirm this structure and the thresholds for each schedule.

📊 Why It Matters

• Fair billing: Multi-family rate structure assumes shared usage across units, keeping your cost-per-unit fair and capped.
• Avoid overcharges: Without the update, higher usage from your second unit gets billed at steep Tier 3/4 single-family rates.
• Simple process: Just call or visit LADWP—typically, reclassification takes a day or two.

🛠️ Tips for Smooth Conversion

• Have your ADU permit/C of O ready.
• Ask if they require a site inspection.
• Confirm the effective date of your new rate once switched.
• Monitor your bills to ensure you're now billed at Schedule B.

💡 Final Takeaway

If you’ve added any secondary dwelling on your property, don’t remain stuck on a single-family account! Upgrading to a multi-family LADWP account (Schedule B) can slash your water bills and ensure fair tiered rates. Spread the word—tell friends and neighbors who’ve built ADUs, JADUs, guest houses, or in-law suites to check their LADWP classification. It’s a small step that can bring big savings.

by Max Fielding Buildoptima Research Team