HomeMy WebLinkAbout2024 Rate Increase Notice - Business and Commercial Water Service
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
Dedicated to Community Service
Notice of Business and Commercial
Water Rate Increase
NOTICE OF WATER RATES, FEES, AND CHARGES EFFECTIVE
FOR WATER BILLED BEGINNING IN JANUARY 2024
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 new water rates and
charges will apply to water billed 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.
The tables below show the itemized charges that are used to determine a monthly water bill1. Your bill
will vary based on meter size, water consumption in units, and geographic location.
Units Current New
All Units $5.52 $5.88
Meter Size System Charges MWD/CWA Total System Charges MWD/CWA Total
3/4"$18.22 $16.33 $34.55 $19.40 $17.19 $36.59
1"$22.72 $27.22 $49.94 $24.19 $28.65 $52.84
1 1/2"$34.22 $54.42 $88.64 $36.43 $57.27 $93.70
2" $47.82 $87.06 $134.88 $50.90 $91.62 $142.52
3" $101.62 $190.45 $292.07 $108.17 $200.43 $308.60
4" $173.30 $342.81 $516.11 $184.48 $360.77 $545.25
6" $348.50 $761.79 $1,110.29 $370.98 $801.71 $1,172.69
8" $550.37 $1,305.91 $1,856.28 $585.87 $1,374.34 $1,960.21
10" $850.11 $2,067.69 $2,917.80 $904.94 $2,176.04 $3,080.98
Current New
Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222.
Water Rates2 (per unit)
Other Charges
Footnotes
1. The District's total rate increase is 6.6%. Within this rate increase, 5.4% of the increase is increased charges passed through from the
wholesale water suppliers. The remaining 1.2% of the rate increase is based upon increases to other District costs, including energy,
labor, benefits, materials, water system replacement, maintenance, operations, and supplies. This remaining amount is within the
Consumer Price Index for All Urban Consumers (CPI-U) for the San Diego-Carlsbad Area annual increase as of January 31, 2023.
2. This per unit charge is based on the units of consumption. One unit of consumption equals 748 gallons of water or one HCF (hundred
cubic feet). Customers outside the service area or Interim Users as defined in Section 25 of the District’s Code of Ordinances will pay a
usage fee equivalent to two times the listed usage fee, plus other fees associated with the Business and Commercial class.
3. The Fixed Charges, based on meter size, ensure that customers pay their proportionate share of the water system replacement,
maintenance, and operating expenses. MWD and CWA charges are based on meter size and match, in total, the cost charged by
wholesale water suppliers.
4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in elevation. This is charged
proportionately for every 100 feet elevation over 450 feet.
5. Fire Service requires a separate meter and is a monthly fee based on service size.
This information reflects only changes to rates. For a comprehensive listing, see the
Otay Water District’s Code of Ordinances at otaywater.gov.
Monthly Fixed Charges3
Units Current New Service Size Current New
All Units 0.068$ 0.075$ 3/4" 2.60$ 2.77$
1" 2.68$ 2.85$
1 1/2" 2.94$ 3.13$
2" 3.38$ 3.59$
3" 4.99$ 5.31$
4" 7.75$ 8.25$
6" 17.69$ 18.83$
8" 34.83$ 37.08$
10" 60.61$ 64.51$
Fire Service System Charges5Energy Charges4