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HomeMy WebLinkAbout2024 Rate Increase Notice - Non-Public Irrigation and Commercial Agriculture 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 Non-Public Irrigation and Commercial Agriculture 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 $6.36 $6.77 Meter Size System Charges MWD/CWA Total System Charges MWD/CWA Total 3/4"$16.13 $16.33 $32.46 $17.17 $17.19 $34.36 1"$19.24 $27.22 $46.46 $20.48 $28.65 $49.13 1 1/2"$27.26 $54.42 $81.68 $29.02 $57.27 $86.29 2" $36.69 $87.06 $123.75 $39.06 $91.62 $130.68 3" $77.26 $190.45 $267.71 $82.25 $200.43 $282.68 4" $129.48 $342.81 $472.29 $137.83 $360.77 $498.60 6" $251.10 $761.79 $1,012.89 $267.29 $801.71 $1,069.00 8" $383.41 $1,305.91 $1,689.32 $408.14 $1,374.34 $1,782.48 10" $585.74 $2,067.69 $2,653.43 $623.52 $2,176.04 $2,799.56 Current New Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Water Rates2 (per unit) Other Charges Footnotes 1. The District's total rate increase is 6.6%. Within this rate increase, 5.4% of the increase is increased charges passed through from the wholesale water suppliers. The remaining 1.2% of the rate increase is based upon increases to other District costs, including energy, labor, benefits, materials, water system replacement, maintenance, operations, and supplies. This remaining amount is within the Consumer Price Index for All Urban Consumers (CPI-U) for the San Diego-Carlsbad Area annual increase as of January 31, 2023. 2. This per unit charge is based on the units of consumption. One unit of consumption equals 748 gallons of water or one HCF (hundred cubic feet). Customers outside the service area or Interim Users as defined in Section 25 of the District’s Code of Ordinances will pay a usage fee equivalent to two times the listed usage fee, plus other fees associated with the Non-Public Irrigation and Commercial Agriculture class. 3. The Fixed Charges, based on meter size, ensure that customers pay their proportionate share of the water system replacement, maintenance, and operating expenses. MWD and CWA charges are based on meter size and match, in total, the cost charged by wholesale water suppliers. 4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in elevation. This is charged proportionately for every 100 feet elevation over 450 feet. 5. Fire Service requires a separate meter and is a monthly fee based on service size. This information reflects only changes to rates. For a comprehensive listing, see the Otay Water District’s Code of Ordinances at otaywater.gov. Monthly Fixed Charges3 Units Current New Service Size Current New All Units 0.068$ 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