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.
A study commissioned by the Utah Division of Water Resources
recommended that Utah implement “more aggressive” tiered rates
for water use. Tiered rates refer to the amount charged for
water based on the type of usage and consumption amount.
According to the study, which was completed by LRB Public
Finance Advisors, a “more aggressive” rate structure would
charge higher amounts to those who use more water.
… Increased pricing was just one of six recommendations
made by the study. The study also recommended clarifying
water policy priorities and defining “reasonable water rates.”
The document said that Utah water policy currently does not
address priorities or determine what a reasonable rate would
be.
A committee meant to oversee elected officials on how they
charge San Diegans for water and sewer services hasn’t been
able to do its job due to a lack of members. The
Independent Rates Oversight Committee, or IROC, has served as
the official advisory body to the mayor and City Council on
issues related to the Public Utilities Department’s operations
since 2007. Yet the committee has met just twice this year —
even as residents face rising water rates. Officials say IROC
and other city committees are facing the same struggle:
vacancies. Five of IROC’s 11 seats are open, and the remaining
spots are held by members serving beyond their terms that
expired years ago. IROC members have long raised concerns over
the vacancies.
During their meeting on Tuesday, November 12, 2024, the Antioch
City Council could not get three votes to approve water rates
for the coming year. With District 2 Councilman Mike Barbanica
absent due to a family medical emergency, the remaining four
members split 2-1-1 on the motion to increase rates and
continue the current tiered rate structure. The structure means
those residential customers who use more water pay a higher per
gallon rate, effectively subsidizing the rates for those who
use less water each month. Following the vote, during one of
his final meetings on the council, Mayor Lamar Hernandez-Thorpe
acted like Pontius Pilate and washed his hands of it saying,
“If the new council wants to take this up, they can take it
up.”
There’s a growing perception that there’s a water affordability
crisis in California, but as with most water issues, the
reality is more complex. PPIC Water Policy Center founder and
senior fellow Ellen Hanak sat down for a conversation with PPIC
adjunct fellow and water economist David Mitchell to learn
more. … Is there a water affordability issue in the
state right now—and if so, what’s causing it? Water rates have
been rising faster than inflation for a long time now. In the
late 1980s, observers lamented how crazy cheap water service
was, because a lot of the costs around procuring and delivering
water were not reflected in water bills. That’s changed now,
which is partly why water service costs have risen. Also, there
are now many more drinking water quality requirements and
environmental safeguards associated with producing water, and
these requirements contribute to rising costs.
Poway’s average residential customers could see a nearly $33
bimonthly increase on their water bill next spring. The city
has planned for 6 percent annual water rate increases since
January 2022. The increases are considered adjustments for rate
increases by the city’s water supplier, San Diego County Water
Authority (SDCWA). On Jan. 1, 2025 customers will see an
increase of $23.51 to their bimonthly billing period. Also
starting Jan. 1, an additional $9.32 charge could be added if
the City Council approves another 3 percent adjustment on the
bimonthly water bills. Actual bill amounts will vary based on
the amount of water households consume.
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.
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.
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.
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.
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).
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.
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.
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.
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.
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.
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.
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.
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.
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.
