City of San Diego, CA

07/25/2024 | Press release | Distributed by Public on 07/25/2024 17:44

City of San Diego Lowers Proposed Water Rate Increase at County Water Authority

FOR IMMEDIATE RELEASE
July 25, 2024

CONTACT:
[email protected]

SAN DIEGO - Mayor Todd Gloria issued the following statement regarding the City of San Diego's successful effort to lower a water-rate increase proposed by the San Diego County Water Authority (CWA):

"Months ago, the San Diego County Water Authority proposed an unacceptable 24.5% rate increase for water customers in 2025, which was reduced to 18% last month - still unacceptable.

"Today, thanks to the effective leadership of the City of San Diego's representatives on the Water Authority along with representatives from other local water agencies - who persuaded Water Authority staff to find cost-saving efficiencies and further reduce the necessary increase - we were able to bring it down to 14%. This means less money coming out of the pockets of ratepayers."

City of San Diego representatives to CWA urged the agency to pursue operational cost-cutting measures and grant opportunities in order to avoid major delays in the Capital Improvement program, and establish a new innovative program allowing for prepaying of fixed costs.

The City of San Diego's 2025 water rates had assumed an 8% increase from CWA. Following today's vote, the City will analyze its options and return to the City Council should modifications be needed. The proposed rate increases will go into effect January 1, 2025.

Water purchases account for a significant portion of CWA's expenditures and now exceed total water demand for the region. Looking toward the future, this long-term challenge threatens affordability for ratepayers both in the City and throughout the region. Continuing to raise rates without addressing the structural challenges it faces is not a sustainable or responsible path for the organization.

The City will continue to press CWA to pursue opportunities to leverage its existing take-or-pay water supply purchase contracts that could result in rate relief for member agencies and ratepayers. The City is committed to working with CWA and its other member agencies to address this issue and steer the organization towards a better direction for the future.

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