LADWP Water Rate Increase

Have you heard about the LADWP water rate increase?  I haven't followed the news very closely, since I live outside their jurisdiction, but it sounds like everyone is going to be required to reduce their water usage by 15%.  Now, maybe there's an allowance for this, but what if someone is already using the bare minimum? What if they can't cut their usage? Will they be penalized? How are they going to figure out if you've been using 15% less?  And lastly, 15% less than when?
 
I hope the LADWP explains this increase well to their customers. As someone who's just heard the news reports, I'm confused.
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