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Home My WebLink About2024 Rate Increase Notice - Residential Water Service Dear Customer, As part of the annual budget adoption process completed in June 2023, the Otay Water District (District) approved a water-rate increase to proportionately recover the increasing costs of providing water to the District’s customers. The District’s overall costs related to potable water are increasing approximately 6.6% in 2024. The water bill for a typical single-family residential customer using 10 units of water per month will increase by $5.72 per month beginning January 1, 2024. Depending on your billing cycle, the new rates and charges will apply to water used as early as the beginning of December 2023. This letter serves as a 30-day notice of rate increases. On October 5, 2022, the District’s Board of Directors adopted a five-year schedule of water rates in compliance with applicable provisions of the law. This increase is within the limits approved in the five-year schedule of rates. The District is a nonprofit public agency that provides water service to the community. As a nonprofit public agency, the District does not make a profit from providing water service, and it cannot operate at a loss. Water bills reflect only those rates, fees, and charges sufficient to support water service. To continue to provide reliable service, the District must implement and pass through to its customers the full cost of providing water service, including cost increases imposed by the District’s water and energy suppliers. This rate increase is necessary to cover the increasing cost of purchasing water from the District’s water suppliers, energy provider, and increasing operational and capital improvement costs. The District’s wholesaler supplier, the San Diego County Water Authority (CWA), has raised its rates primarily due to increasing rates from its supplier, the Metropolitan Water District of Southern California (MWD), and the higher costs of a drought-proof water supply. CWA and MWD's increased costs are largely due to the increased cost of importing water from Northern California and the Colorado River and the costs to produce water from the Carlsbad Desalination Plant to ensure that water can be reliably delivered to every property in the District, even during times of shortage or drought. Increasing costs from the District’s energy provider, SDG&E, and increasing costs of labor and materials are also adding to the increasing cost of providing water service. Pursuant to Government Code Section 53759, there is a 120-day statute of limitations for any legal action challenging any new, increased, or extended water fee or charge; however, the rates described in this notice implement the pass- through and inflation adjustment methodology previously approved by the District and effective January 1, 2023 pursuant to Government Code Section 53750(h)(2)(B). The District works to minimize rate impacts of its internal costs and implements cost-efficiency measures to help limit the impact of higher rates from suppliers. The District’s goal is to remain among the lower cost water service providers in San Diego County. For more information about District-wide efforts to streamline operations, visit otaywater.gov or email info@otaywater.gov. Customers interested in learning ways to reduce their water use to minimize the effects of this rate increase can visit the District’s conservation and rebate pages at otaywater.gov. The District provides information on rebates, incentives, water audits, and other resources to help customers save water. Additionally, the Water Conservation Garden located in Rancho San Diego is open to the public and offers various conservation exhibits, programs, and classes in person and online. For more information about the Water Conservation Garden, visit thegarden.org. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 619-670-2222 otaywater.gov Notice of Residential Water Rate Increase Dedicated to Community Service NOTICE OF WATER RATES, FEES, AND CHARGES FOR WATER BILLED BEGINNING IN JANUARY 2024 The tables below show the itemized charges that determine a monthly water bill for a customer who uses 10 HCF (hundred cubic feet) of water per month. Your bill will vary based on your meter size, your water consumption in units, and your geographic location. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Typical Bill at 10 HCF (or Units) of Water per Month Water Rates2 (per unit) Other Charges Footnotes 1. MWD/CWA Charges are based on meter size and match, in total, the cost charged by wholesale water suppliers. The System Charges, based on meter size, ensure that customers pay their proportionate share of the water system replacement, maintenance, and operating expenses. 2. The Water Rate is a cost per unit that varies for each customer based on water usage and can be calculated using the consumption block tables. One unit of consumption equals 748 gallons of water or one HCF. Customers outside the service area or Interim Users as defined in Section 25 of the District’s Code of Ordinances will pay a usage fee equivalent to two times the listed usage fee, plus other fees associated with their respective customer class. 3. The Energy Charges represent the cost of the energy required to pump or lift each unit of water 100 feet in elevation. This is charged proportionately for every 100 feet of elevation over 450 feet. 4. The District's total rate increase is 6.6%. Within this rate increase, 5.4% of the increase is increased charges passed through from the wholesale water suppliers. The remaining 1.2% of the rate increase is based upon increases to other District costs, including energy, labor, benefits, materials, water system replacement, maintenance, operations, and supplies. This remaining amount is within the Consumer Price Index for All Urban Consumers (CPI-U) for the San Diego-Carlsbad Area annual increase as of January 31, 2023. Charges collected through the property tax roll (availability fees) are not included in this total. Consumption Blocks (in units)Current New 0 - 9 $5.26 $5.60 10 - 12 $5.71 $6.08 13 or more $6.35 $6.76 Meter Size System Charges MWD/CWA Total System Charges MWD/CWA Total 3/4" $18.07 $16.33 $34.40 $19.24 $17.19 $36.43 1" $22.47 $27.22 $49.69 $23.92 $28.65 $52.57 1 1/2" $33.73 $54.42 $88.15 $35.91 $57.27 $93.18 2" $47.04 $87.06 $134.10 $50.07 $91.62 $141.69 Current New Current New Energy Charges3 (per unit) $0.068 $0.075 MWD/CWA1 System Charges1 Water Rate2 Energy Charges3 Total4 Current $16.33 $18.07 $53.05 $2.47 $89.92 New $17.19 $19.24 $56.48 $2.73 $95.64 $5.72Increase in monthly water bill (at 10 units or HCF) Monthly Fixed Charges1 This information reflects only changes to rates. For a comprehensive listing, see the Otay Water District’s Code of Ordinances at otaywater.gov.