HomeMy WebLinkAbout2017 Rate Increase Notice - Residential Water ServiceNotice of Residential Water
Rate Increase
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley, CA 91978-2004
619-670-2222
www.otaywater.gov
NOTICE OF INCREASED WATER RATES AND CHARGES
FOR WATER BILLED IN JANUARY 2017
Dear Customer,
An overall average rate increase of 5.0 percent was approved by the Otay Water District (the
“District”) as part of the annual budget adoption process completed in May 2016. For a typical single-
family residential customer, your water bill will increase by $1.21 per month beginning January 1,
2017. Depending on your billing cycle, the new rates and charges will apply to water used as early
as the beginning of December 2016. This letter serves as a 30-day notice of rate increases.
The District is a revenue-neutral public agency. To continue providing reliable high-quality service, the
District must implement rate increases and pass-through to its customers the higher costs from
wholesale water suppliers. One-hundred percent of this 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.
On September 4, 2013, the District 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.
Rate increases cover the cost of acquiring imported water from the Colorado River and Northern
California. Otay’s Water wholesaler, CWA has raised its rates primarily due to higher costs from the
Metropolitan Water District of Southern California, although they also incorporate higher costs for drought
-proof water supplies from the Carlsbad Desalination Plant. CWA rates were also impacted by state-
mandated reductions in water use that decreased sales more than earlier projections.
For its part, the District works to minimize internal costs including reducing the number of full-time
employees and institutes efficiency measures that 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, go to www.otaywater.gov or contact
us 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
pages at www.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 www.thegarden.org.
Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222.
Dedicated to Community Service
* Otay’s estimate
using average
rate increase
(11 unit water use and 3/4” meter)
PROJECTED WATER BILLS BY AGENCY AS OF JANUARY 2017
Single Family Consumption Blocks
(Units or HCF)2 Current New
Conservation Tier3 $2.13 $2.53
6 - 10 $3.32 $3.95
11 - 22 $4.32 $5.13
23 + $6.65 $7.90
Current New
Meter Size System Fee MWD/CWA Total System Fee MWD/CWA Total
3/4” $18.91 $16.84 $35.75 $15.91 $15.00 $30.91
1” $26.71 $31.24 $57.95 $22.47 $27.84 $50.31
1 1/2” $46.22 $70.66 $116.88 $38.88 $62.96 $101.84
2” $69.61 $120.17 $189.78 $58.55 $107.08 $165.63
Footnotes
Typical Bill at 11 HCF2 (or Units) of Water per Month
MWD/CWA1 System Fee1 Water Rate2 Energy Charge4 Total5
Current $16.84 $18.91 $37.52 $2.70 $75.97
New $15.00 $15.91 $44.63 $1.64 $77.18
Increase in monthly water bill (at 11 units or HCF)2: $ 1.21
Your bill will vary based on meter size, water consumption in units, and geographic location.
1. These fees vary based on the meter size. The
MWD/CWA fee is decreasing to match the costs from
these water suppliers. The System Fee pays for
betterment, replacement, and maintenance of water
system infrastructure, as well as operating expenses.
The system fee is decreasing, reflecting the lower
funding of reserves.
2. This cost varies 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
(hundred cubic feet).
3. The Conservation Tier discount applies toward the first
five units when overall consumption is ten units or less.
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
foot of elevation over 450 feet.
5. Charges collected through the property tax role
(availability fees and general obligation debt) are not
included in this total.
6. Fire Service requires a separate meter and this fee is
based on meter size.
This information reflects only changes to rates. For a comprehensive listing, please see the
Otay Water District’s Code of Ordinances at www.otaywater.gov.
Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222.
Other Charges
Current New
Energy Charges4 $0.072 $0.044
Fire Service <3”meter 6 $24.69 $20.77
Fire Service >4”meter 6 $33.27 $27.98