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HomeMy WebLinkAbout2019 Rate Increase Notice - Recycled 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 Recycled Water Rate Increase NOTICE OF INCREASED RECYCLED WATER RATES AND CHARGES FOR WATER BILLED BEGINNING IN JANUARY 2019 An overall average rate increase of 3.2 percent was approved by the Otay Water District (the “District”) as part of the annual budget adoption process completed in May 2018. The new rates and charges become effective January 1, 2019. Depending on your billing cycle, the new rates and charges will apply to water used as early as the beginning of December 2018. This letter serves as a 30-day notice of rate increases. On October 4, 2017, the District’s Board of Directors adopted a five-year schedule of rates in compliance with applicable provisions of the law. This increase is within the limits approved in the five- year schedule of rates. Recycled water rates are based in part on the cost of potable water from the District’s wholesale suppliers. To continue providing reliable high-quality service, the District must implement rate increases and pass-through to its customer’s higher costs from wholesaler water suppliers. A large percentage of the overall increase is a direct result of higher costs from suppliers that include the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), and the City of San Diego. Producing and distributing recycled water is costly and the District is a revenue-neutral public agency. To help offset the cost of supplying this alternative water source, the District receives financial incentives from its wholesale water suppliers (MWD and CWA). Everyone benefits from recycled water, including potable water customers, because it diversifies our water sources. Recycled water users incur additional expenses to meet recycled water regulatory requirements. Today, approximately 11 percent of the District’s water supply is made up of recycled water and there are plans to continue expanding the system. Rate increases are necessary to cover the increasing cost of purchasing water from the District’s water suppliers. The District’s wholesaler supplier, CWA, has raised its rates primarily due to increasing rates from its supplier, MWD, and higher costs of a drought-proof water supply. These increased costs are largely due to the increased cost of importing water from Northern California and the Colorado River, and costs for the production of water from the Carlsbad Desalination Plant. For its part, the District works to minimize rate impacts of its internal costs and implements 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 the District at 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. In addition, the Water Conservation Garden located in Rancho San Diego is open to the public and offers various conservation exhibits and classes to help you save water. Visit the Water Conservation Garden at thegarden.org. The tables below show the itemized charges that are used to determine a monthly water bill. Your bill will vary based on meter size, water consumption in units, customer class, and geographic location. Meter Size Current New Meter Size Current New 3/4"$31.11 $32.20 3/4"$36.85 $38.14 1"$43.94 $45.48 1"$52.04 $53.86 1 1/2"$76.04 $78.70 1 1/2"$90.06 $93.21 2" $114.50 $118.51 2" $135.63 $140.38 3" $217.15 $224.75 3" $257.21 $266.21 4" $332.67 $344.31 4" $394.01 $407.80 6" $663.54 $686.76 6" $774.07 $801.16 8" $1,038.56 $1,074.91 8" $1,230.08 $1,273.13 Recycled Irrigation Monthly Fixed System Charges2 Recycled Commercial Monthly Fixed System Charges2 Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Water Rate 1. 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 Otay Water District, outside an Improvement District, or using temporary potable meters pay two times this rate. 2. The Fixed System Charges, based on meter size and customer class, ensure that customers pay their proportionate share of the water system replacement, maintenance, and operating expenses. The system charge is increasing, reflecting the higher funding of reserves. 3. The Energy Charge represent the cost of energy required to pump each unit of water 100 feet in elevation. This is charged proportionately for every 100 feet of elevation over 450 feet. The increase is due to increased power costs charged by the District’s power supplier. 4. The Government Fee is a per unit charge and your bill will vary based on water consumption. This charge is a per unit charge in lieu of tax revenues paid by non-government customers. Footnotes Other Charges This information reflects only changes to rates. For a comprehensive listing, please see the Otay Water District’s Code of Ordinances at otaywater.gov. Units Current New Units Current New All Units $4.26 $4.41 All Units $3.01 $3.12 Recycled Irrigation Water Rate1 Recycled Commercial Water Rate1 Fixed System Charges by Meter Size Current New Energy Charge3 $0.053 $0.056 Government Fee4 $0.41 $0.42