HomeMy WebLinkAbout2016 (January) Rate Increase Notice - Recycle Water Service Notice of Recycled Water
Rate Increase
NOTICE OF INCREASED RECYCLED WATER RATES AND CHARGES EFFECTIVE
FOR WATER BILLED IN JANUARY 2016
Dear Customer,
An overall average rate increase of 5.8 percent was approved by the Otay Water District (the
“District”) as part of the annual budget adoption process completed in June 2015. The new water rates
and charges will apply to water billed beginning January 1, 2016 and, depending on your billing cycle,
will apply to water used as early as the beginning of December 2015. This letter serves as a 30-day
notice of rate increases.
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 customers higher costs from wholesalers water suppliers. All of
these increases are a result of higher cost from those suppliers, which include the Metropolitan Water
District of Southern California (MWD), San Diego County Water Authority (CWA), and the City of San
Diego, as well as power cost increases from SDG&E.
Producing and distributing recycled water is also costly and the District is a revenue-neutral
public agency. To help offset the cost of supplying alternative water sources, the District receives
financial incentives from its wholesale water suppliers. Everyone benefits from recycled water,
including potable water customers, because it diversifies our water sources. Therefore, potable and
recycled water rates are calculated in a combined manner. Recycled rates are then discounted by 15
percent, recognizing the added expense to use recycled water. Today, approximately 13 percent of
the District’s water supply is made up of recycled water and there are plans to continue expanding the
system.
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.
Water wholesalers raise their water rates as they work to obtain new and more reliable
supplies of water or build new and more reliable infrastructure. This includes agricultural to urban
water transfers expansion of reservoirs, pipeline relining projects, new water treatment plants, as well
as potential new sources of water supplies such as ocean water desalination. In addition, rate
increases cover the cost of acquiring imported water from the Colorado River and Northern California.
For its part, the District continues to work to reduce internal costs including reducing the
number of full-time employees and instituting efficiency programs that help reduce the impact of higher
rates from suppliers. The District also continually strives to be among the lower cost water service
providers in San Diego County.
With water resources stretched thin across California and mandates on all Californians to save
water, customers interested in learning ways in which they can 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 you save
water.
The Water Conservation Garden in Rancho San Diego is free to the public and offers various
conservation exhibits and classes to help you save water. Please visit the Water Conservation
Garden, or go to www.thegarden.org.
For more information about the Otay Water District, visit www.otaywater.gov or contact us at
info@otaywater.gov.
Dedicated to Community Service
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley, CA 91978-2014
619-670-2222
www.otaywater.gov
Si gusta assistencia en Español, referente a esta notificacion, favor de llamar al 619-670-2222.
1. Recycled water rates are based on meter size and the number of recycled water units used each month. Customers
outside the Otay Water District, in an Improvement District, or using temporary meters pay two times this rate. A unit of
recycled water equals 748 gallons.
2. Systems Fees vary based on meter size. This 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.
3. The Energy Charge represents the cost of energy required to pump each unit of recycled water 100 feet in elevation.
This is charged proportionately for every foot of elevation over 450 feet.
4. This charge is a per unit charge in lieu of tax revenues paid by non-government customers.
Consumption Fees by Meter Size
Current New Current New
Recycled Irrigation Usage Fee1 (3/4" to 1.0" meter) Recycled Irrigation Usage Fee1 (1 1/2" to 2.0" meter)
Consumption Blocks (units)1 Consumption Blocks (units)1
0 - 32 $3.73 $3.80 0 - 130 $3.73 $3.80
33 - 75 $3.79 $3.86 131 - 325 $3.79 $3.86
76 or more $3.84 $3.91 326 or more $3.84 $3.91
Recycled Irrigation Usage Fee1 (3" & 4" meter) Recycled Irrigation Usage Fee1 ( >6" meter)
Consumption Blocks (units)1
0 - 440 $3.73 $3.80 0 - 4,000 $3.73 $3.80
441 - 1,050 $3.79 $3.86 4,001 - 10,000 $3.79 $3.86
1,051 or more $3.84 $3.91 10,001 or more $3.84 $3.91
Consumption Blocks (units)1
Footnotes
Si gusta assistencia en Español, referente a esta notificacion, favor de llamar al 619-670-2222.
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. Prolonged drought conditions or declared water shortages may impact rates.
Recycled Water Usage Commercial 1 (<10" meter) System Fees2
Consumption Blocks (units)1 Meter Size
0 - 173 $2.72 $2.77 3/4” $19.39 $18.91
174 - 831 $2.77 $2.82 1” $27.39 $26.71
832 or more $2.81 $2.86 1 1/2” $47.40 $46.22
2” $71.39 $69.61
Recycled Water Usage Commercial 1 (>10"meter) 3” $135.41 $132.02
4” $207.43 $202.24
0 - 7,426 $2.72 $2.77 6” $407.50 $397.31
7,427 - 14,616 $2.77 $2.82 8” $647.56 $631.37
14,617 or more $2.81 $2.86 10” $927.63 $904.44
Government Fee4 Energy Charges3
$0.32 $0.37 $0.050 $0.072
Consumption Blocks (units)1