Topic: Water Rates

Overview

Water Rates

Typically, water utilities’ budgets are funded by revenue collected through water and sewer rates. Revenue generated by rates covers the costs of operations, as well as ongoing upgrades and repairs to pipelines, treatment plants, sewers and other water infrastructure.

State legislation also has affected the water rate-setting process by requiring new processes for altering water rates, as well as by requiring water conservation, which in turn decreases the demand for water.

Aquafornia news NBC - Los Angeles

Beverly Glen woman hit with $9.5k water bill after landslide

Nearly six weeks after a major winter storm led to flooding and landslide throughout Southern California, some homeowners in Beverly Glen are still trying to return home. On Caribou Lane, a landslide knocked a home off its foundation, and the debris slid into the neighbors’ homes. That debris and mud left Samila Bahsoon’s home with a lot of damage. … She has potentially more than $600,000 in damage, and two insurance companies already denied her claims. … She also said when the neighbor’s home was knocked off the foundation, the debris broke her water main. And it led to a massive water bill. “LADWP sent me a $9,500 water bill, which is 6,500% more than average for the last 35 years that this house has been used,” she said.

Aquafornia news Los Angeles Times

As water rates soar, legislators seek funding for assistance

In California and across the country, household water rates have been rising as utilities invest to upgrade aging infrastructure, secure future supplies and meet treatment standards for clean drinking water. As monthly water bills continue to increase, growing numbers of customers have been struggling to pay. New federal legislation would establish a water assistance program to help low-income families pay their bills and prevent shutoffs of water service. The bill, introduced by Democratic Sen. Alex Padilla, would make permanent a federal program that Congress authorized in 2020 during the COVID-19 pandemic. The program provided more than $1 billion in assistance, but it’s expiring.

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Aquafornia news Pleasanton Weekly

Pleasanton council to review potential bond sale to finance water infrastructure projects

The Pleasanton City Council will be reviewing a staff presentation on the city’s proposed plan to authorize and approve a bond sale for as much as $19 million to finance a portion of planned water infrastructure upgrades during Tuesday’s meeting. According to the March 5 staff report, staff will be presenting a debt financing overview and a resolution for the council to approve, which will declare the city’s intent to “reimburse expenditures relating to capital improvement projects from the proceeds of tax-exempt obligations.”

Aquafornia news Los Angeles Times

Plant a tree, get $100 under new MWD program

With many areas of Southern California starved for shade, the region’s largest water supplier has launched a rebate program offering residents and businesses up to $500 as an incentive to plant trees. The Metropolitan Water District of Southern California on Tuesday announced the addition of the tree incentive to its long-standing turf-replacement program, which offers cash to property owners who rip out water-guzzling grass and replace it with drought-tolerant landscaping. Starting this week, new applicants can seek a $100 rebate for each eligible tree planted — up to five trees total — as part of their turf-replacement project, according to a spokesperson for the district.

Related article: 

Aquafornia news Orange County Register

Ocean water from San Diego could stabilize south OC supply, boost desal

Ocean water desalinated at a controversial plant in Carlsbad soon could be stabilizing supplies for south Orange County residents served by Moulton Niguel Water District, who now depend on fluctuating allotments from the Colorado River and Northern California to keep their taps flowing. In exchange, western San Diego County residents could see some relief from their soaring water bills if south O.C …

Aquafornia news KSBY - Central Coast

Proposed bill could help low-income families struggling with increased bills

Residents in Grover Beach are feeling the pinch as water rates surged this month, but a new bill could ease their burden. “We had a rate increase of $26, which we were billed once every two months,” said Dave Browning, who lives in Grover Beach. “That was roughly $13 per month.” Grover Beach residents recently felt the impact of a long-discussed water rate hike. “We did send a couple of letters, and I know they’ve received quite a few from what I was being told,” Browning said. And while many still have strong opinions about it moving forward, those facing the reality of the hike now are concerned about how they’ll pay for it.

Aquafornia news Pleasanton Weekly

Zone 7 alleges Pleasanton failed to pay $18.5 million in fees

The Zone 7 Water Agency last month sued the city of Pleasanton alleging it failed to pay the agency over $18 million in fees after Pleasanton increased water meter sizes and connections but failed to properly report those changes. Because the city did not uphold its end of a longstanding agreement, Zone 7’s finances have been heavily impacted and is looking for the city to pay what it owes, and possibly more, according to the petition for writ of mandate and complaint for breach of contract, declaratory relief and failure to perform mandatory duty under state law – a copy of which has been obtained by the Pleasanton Weekly.

Aquafornia news CBS 8 - San Diego

San Diego water customers still waiting for bills

Nearly a year passed before Point Loma resident Jerry Greene received his water bill.  He thought his wife had set up auto-pay to have the water bill automatically deducted from their account. … Greene had no idea that he was not receiving bills. He had no idea that the city suspected a leak at his house. How could he? He had not received a notice or a bill for nearly a year. … Through a public records request the city told CBS 8 that as of December 2023, more than 25,100 water customers were not receiving bills due to many issues which include high water usage, low-water usage, misread meters and repeated estimated meter reads. 

Aquafornia news Politico

Fixing a hole

…. Southern California has done a great job saving water — so good a job that it’s now facing a budget deficit. The Metropolitan Water District, the state’s largest water supplier, is considering double-digit rate increases after its 19 million customers saved so much water over the past two years that sales dropped to their lowest levels since the 1970s. … The problem has been building for decades but became urgent over the past two years when water sales came in 11 and then 24 percent less than forecast. At the same time, inflation drove up costs. While the district has chosen to dip into its reserves in the past to avoid large rate increases, Met General Manager Adel Hagekhalil argued that’s not enough anymore in light of increasing extreme weather swings. 

Pandemic Lockdown Exposes the Vulnerability Some Californians Face Keeping Up With Water Bills
WESTERN WATER IN-DEPTH: Growing mountain of water bills spotlights affordability and hurdles to implementing a statewide assistance program

Single-family residential customers who are behind on their water bills in San Diego County's Helix Water District can get a one-time credit on their bill through a rate assistance program funded with money from surplus land sales.As California slowly emerges from the depths of the COVID-19 pandemic, one remnant left behind by the statewide lockdown offers a sobering reminder of the economic challenges still ahead for millions of the state’s residents and the water agencies that serve them – a mountain of water debt.

Water affordability concerns, long an issue in a state where millions of people struggle to make ends meet, jumped into overdrive last year as the pandemic wrenched the economy. Jobs were lost and household finances were upended. Even with federal stimulus aid and unemployment checks, bills fell by the wayside.

Western Water California Groundwater Map Layperson's Guide to Groundwater Gary Pitzer

With Sustainability Plans Filed, Groundwater Agencies Now Must Figure Out How To Pay For Them
WESTERN WATER NOTEBOOK: California's Prop. 218 taxpayer law and local politics could complicate efforts to finance groundwater improvement projects

A groundwater monitoring well in Colusa County, north of Sacramento. The bill is coming due, literally, to protect and restore groundwater in California.

Local agencies in the most depleted groundwater basins in California spent months putting together plans to show how they will achieve balance in about 20 years.

Western Water Gary Pitzer

California Officials Draft a $600M Plan To Help Low-Income Households Absorb Rising Water Bills
WESTERN WATER NOTEBOOK: State Water Board report proposes new taxes on personal and business income or fees on bottled water and booze to fund rate relief program

Filling a glass with clean water from the kitchen tap.Low-income Californians can get help with their phone bills, their natural gas bills and their electric bills. But there’s only limited help available when it comes to water bills.

That could change if the recommendations of a new report are implemented into law. Drafted by the State Water Resources Control Board, the report outlines the possible components of a program to assist low-income households facing rising water bills.

Western Water California Water Map Layperson's Guide to the State Water Project Gary Pitzer

As He Steps Aside, Tim Quinn Talks About ‘Adversarialists,’ Collaboration and Hope For Solving the State’s Tough Water Issues
WESTERN WATER Q&A: Tim Quinn, retiring executive director of Association of California Water Agencies

ACWA Executive Director Tim Quinn  with a report produced by Association of California Water Agencies on  sustainable groundwater management.  (Source:  Association of California Water Agencies)In the universe of California water, Tim Quinn is a professor emeritus. Quinn has seen — and been a key player in — a lot of major California water issues since he began his water career 40 years ago as a young economist with the Rand Corporation, then later as deputy general manager with the Metropolitan Water District of Southern California, and finally as executive director of the Association of California Water Agencies. In December, the 66-year-old will retire from ACWA.

Western Water Gary Pitzer

Drought’s Impact on Fiscal Planning Highlights PPIC Report
Suppliers need “proactive” drought pricing to prevent cash crunch

During drought, people conserve water. That’s a good thing for public water agencies and the state as a whole but the reduction in use ultimately means less money flowing into the budgets of those very agencies that need funds to treat water to drinkable standards, maintain a distribution system, and build a more drought-proof supply.

“There are two things that can’t happen to a water utility – you can’t run out of money and you can’t run out of water,” said Tom Esqueda, public utilities director for the city of Fresno. He was a panelist at a June 16 discussion in Sacramento about drought resiliency sponsored by the Public Policy Institute of California (PPIC).

Western Water Magazine

Ante Up: Funding California’s Water
May/June 2014

This printed issue of Western Water looks at how water use is paid for and the push to make public financing more flexible.

Western Water Magazine

Are We Keeping Up With Water Infrastructure Needs?
January/February 2012

This printed issue of Western Water examines water infrastructure – its costs and the quest to augment traditional brick-and-mortar facilities with sleeker, “green” features.

Western Water Magazine

Dollars and Sense: How We Pay for Water
September/October 2009

This printed issue of Western Water examines the financing of water infrastructure, both at the local level and from the statewide perspective, and some of the factors that influence how people receive their water, the price they pay for it and how much they might have to pay in the future.

Western Water Magazine

Changing the Status Quo: The 2009 Water Package
January/February 2010

This printed issue of Western Water looks at some of the pieces of the 2009 water legislation, including the Delta Stewardship Council, the new requirements for groundwater monitoring and the proposed water bond.

Western Water Magazine

A ‘New Direction’ for Water Decisions? The California Water Plan
May/June 2010

This printed issue of Western Water examines the changed nature of the California Water Plan, some aspects of the 2009 update (including the recommendation for a water finance plan) and the reaction by certain stakeholders.

Western Water Magazine

Small Water Systems, Big Challenges
May/June 2008

This printed copy of Western Water examines the challenges facing small water systems, including drought preparedness, limited operating expenses and the hurdles of complying with costlier regulations. Much of the article is based on presentations at the November 2007 Small Systems Conference sponsored by the Water Education Foundation and the California Department of Water Resources.

Western Water Magazine

Viewing Water with a Wide Angle Lens: A Roundtable Discussion
January/February 2013

This printed issue of Western Water features a roundtable discussion with Anthony Saracino, a water resources consultant; Martha Davis, executive manager of policy development with the Inland Empire Utilities Agency and senior policy advisor to the Delta Stewardship Council; Stuart Leavenworth, editorial page editor of The Sacramento Bee and Ellen Hanak, co-director of research and senior fellow at the Public Policy Institute of California.

Video

Drinking Water: Quenching the Public Thirst (60-minute DVD)

Many Californians don’t realize that when they turn on the faucet, the water that flows out could come from a source close to home or one hundreds of miles away. Most people take their water for granted; not thinking about the elaborate systems and testing that go into delivering clean, plentiful water to households throughout the state. Where drinking water comes from, how it’s treated, and what people can do to protect its quality are highlighted in this 2007 PBS documentary narrated by actress Wendie Malick. 

Video

Drinking Water: Quenching the Public Thirst (30-minute DVD)

A 30-minute version of the 2007 PBS documentary Drinking Water: Quenching the Public Thirst. This DVD is ideal for showing at community forums and speaking engagements to help the public understand the complex issues surrounding the elaborate systems and testing that go into delivering clean, plentiful water to households throughout the state.

Western Water Excerpt Gary PitzerRita Schmidt Sudman

Dollars and Sense: How We Pay For Water
September/October 2009

It’s no secret that providing water in a state with the size and climate of California costs money. The gamut of water-related infrastructure – from reservoirs like Lake Oroville to the pumps and pipes that deliver water to homes, businesses and farms – incurs initial and ongoing expenses. Throw in a new spate of possible mega-projects, such as those designed to rescue the ailing Sacramento-San Joaquin Delta, and the dollar amount grows exponen­tially to billion-dollar amounts that rival the entire gross national product of a small country.