Customers that use lower quantities of water still pay less than customers who use higher quantities of water. Although water use is lower, the cost of providing reliable water service includes mostly fixed costs that don’t vary commensurate with the reduced quantity of water sold. Many water agencies are now including a drought surcharge to make up the difference in actual costs versus sales revenue during drought years. Napa did not implement a drought surcharge. Rates need to be adjusted to cover operating costs and continue investments in infrastructure.