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Home My WebLink About2025 Rate Increase Notice - Business and Commercial Water ServiceDear Customer, On October 5, 2022, the Otay Water District (District) Board of Directors adopted a five-year schedule of maximum water rates in compliance with applicable provisions of the law. Consistent with that rate schedule, and as part of the annual budget adoption process completed in June 2024, the District approved implementing a water rate increase to proportionately recover the increasing costs from the District’s wholesale water providers (Metropolitan Water District of Southern California and San Diego County Water Authority) and energy provider (San Diego Gas & Electric). The District operates as a revenue-neutral agency and is obligated to pass through any cost increases imposed by its wholesale water and energy providers. To offset these wholesale water and energy provider increases, along with all other cost increases, the District will raise its rates by 12.7%, effective for billings starting January 1, 2025. Depending on your billing cycle, the new rates and charges will apply to water used as early as the beginning of December 2024. This letter serves as a 30-day notice of the rate increase. The District is a not-for-profit public agency that provides water service to the community. As a governmental entity, the District does not make a profit from providing water service and cannot operate at a loss. Water bills reflect only those rates, fees, and charges sufficient to support water service. To continue providing 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. The San Diego County Water Authority (CWA) has raised its rates to the District by 14% primarily due to: The detachment of the Rainbow Municipal Water District and the Fallbrook Public Utility District from CWA. Increased costs from its supplier, the Metropolitan Water District of Southern California (MWD), largely due to the increased cost of importing water from Northern California and the Colorado River. Higher costs for a drought-proof water supply, such as the costs to produce water from the Carlsbad Desalination Plant. Increasing costs from the District’s energy provider, San Diego Gas & Electric (SDG&E), are also adding to the increasing cost of providing water service. The bar graph on the right illustrates the factors contributing to the rate increase. Customers interested in learning how 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 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. 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 Business and Commercial Water Rate Increase Dedicated to Community Service NOTICE OF WATER RATES, FEES, AND CHARGES FOR WATER BILLED BEGINNING IN JANUARY 2025 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. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Water Rates2 (per unit) Units Current New All Units $5.88 $6.47 Monthly Fixed Charges3 Meter Size System Charges MWD/CWA Total System Charges MWD/CWA Total 3/4"$19.40 $17.19 $36.59 $21.34 $21.37 $42.71 1"$24.19 $28.65 $52.84 $26.60 $35.61 $62.21 1 1/2"$36.43 $57.27 $93.70 $40.07 $71.19 $111.26 2" $50.90 $91.62 $142.52 $55.98 $113.89 $169.87 3" $108.17 $200.43 $308.60 $118.97 $249.15 $368.12 4" $184.48 $360.77 $545.25 $202.89 $448.47 $651.36 6" $370.98 $801.71 $1,172.69 $408.01 $996.61 $1,404.62 8" $585.87 $1,374.34 $1,960.21 $644.35 $1,708.44 $2,352.79 10" $904.94 $2,176.04 $3,080.98 $995.27 $2,705.04 $3,700.31 Current New Other Charges Units Current New Service Size Current New All Units $0.075 $0.109 3/4"$2.77 $3.05 1"$2.85 $3.13 1 1/2"$3.13 $3.44 2"$3.59 $3.95 3"$5.31 $5.84 4"$8.25 $9.07 6"$18.83 $20.71 8"$37.08 $40.78 10"$64.51 $70.95 Fire Service System Charges5Energy Charges4 Footnotes 1. The District's total rate increase is 12.7%. This rate increase is 84% attributable to increased charges passed through from wholesale water and energy suppliers. 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 any additional fees associated with their respective customer class. 3. The Fixed Charges, based on meter size, ensure that customers pay their proportionate share of the water system’s 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 charge is applied 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.