San Diego County Water Authority set to increase rates

SAN DIEGO (FOX 5/KUSI) — The San Diego County Water Authority is set to increase the amount it charges local agencies for wholesale water.

“Over the next three years, we’re projecting the need for some significant rate increases to maintain the water supply reliability for our region,” said Mike Lee, director of public affairs with the County Water Authority.

He said the amount they charge local agencies must increase 39% over the next three years. That includes a hike between 16% and 22% during 2025.

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“Revenues have dropped dramatically, water sales have declined and at the same time we face increasing costs across the board in our industry,” said Lee.

A total of 23 local agencies, including the City of San Diego, buy water from the County Water Authority. The increase will force these agencies to also raise rates, but the amount passed on to customers will vary.

“Our member agencies vary vastly on how they pass on those rates to their customers, so there’s not a simple formula for how this will impact any given resident or business,” explained Lee.

For now, Lee said the board is currently considering the rate increase for next year.

“We really rely on these investments to ensure that we have water supply not just for today, not just tomorrow, but for generations to come and that does come as a cost,” said Lee.

Staff will formally propose the rate increase to the board in May and it could be approved by June. Those hikes would take effect Jan. 1, 2025

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