Pass-Through of Wholesale Water Rates and Changes
The District’s five-year water rate study, approved by the Board of Directors in June 2015, allows the District to pass-through the full share of any increase or decrease in fees and charges from the District’s imported water wholesaler, the San Diego County Water Authority (SDCWA). SDCWA performs modifications to the rates and charges for retail water agencies on January 1 of each year. These rates and charges include a variable cost per acre-foot (AF) of water purchased from SDCWA, as well as fixed charges to retail water agencies regardless of how much water is purchased.
Effective January 1, 2019, the District is seeing an overall 0.3% decrease in the cost per AF of water purchased from SDCWA. Fixed charges (not including the IAC) are seeing an overall decrease of 3.3%. The decreases from SDCWA are due to the implementation of cost control measures at the wholesale level. The net overall impact of these modifications is a $0.05 decrease to each of the District’s per billing unit water usage rates.
The District also separately passes-through SDCWA’s Infrastructure Access Charge (IAC) on January 1 of each year. The IAC is a fixed charged for access to imported water from SDCWA and is based upon the size of the water meter serving the property. After a decrease last year, the District’s IAC is increasing by approximately 5.3% this year, based upon meter size.
The new water rates and charges are effective January 1, 2019 and customers will see the impact of these changes on their February 2019 bill, the first full billing after January 1. For more detailed information on water rates and charges, the District’s current water rate schedule is available here.