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HomeMy WebLinkAbout2012 Rate Increase Notice - Recycled Water Service Notice of Recycled Water Rate Increase NOTICE OF INCREASED WATER RATES AND CHARGES EFFECTIVE ON WATER USAGE BEGINNING IN JANUARY 2012 Dear Customer, An overall rate increase of 7.7% was approved by the Otay Water District’s (the “District”) Board of Directors as part of the annual budget adoption process completed in May 2011. The action is necessary due to higher costs from wholesale water suppliers. The rate increase herein noticed is a 100% pass-through to those suppliers. The new water rates and charges will apply to water billed beginning February 1, 2012 and, depending on your billing cycle, may apply to water usage as early as the beginning of January 2012. 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 water services, the District must implement rate increases and must pass-through to its customers higher costs imposed by water wholesalers, the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), and the City of San Diego. Water wholesalers are raising their rates to obtain new and more reliable supplies of water. These include more reliable emergency supplies, agricultural to urban water transfers, canal lining projects that conserve water in Imperial County and transfer that water to end users in San Diego County, as well as new potential sources of water. Water wholesalers are raising their rates by 9.97% in January 2012, but by cutting internal costs, including reducing the number of full-time employees and efficiency programs such as automated meter reading and online billing services, the District is able to absorb a significant amount of those costs and pass-through a smaller rate increase to customers. On August 24, 2009 the District adopted a five-year schedule of rates in compliance with applicable provisions of law. This increase is within the limits contemplated in the five- year schedule of rates. Customers interested in learning ways in which they can reduce their water usage to minimize the effects of this increase can visit the District’s Conservation page at www.otaywater.gov. Additionally, the Water Conservation Garden located in Rancho San Diego is free to the public and offers various conservation exhibits and classes. To learn more about the Garden, please visit www.thegarden.org. For more information about the District, visit www.otaywater.gov or contact us via email at info@otaywater.gov. Dedicated to Community Service Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978 www.otaywater.gov 1. Recycled water rates are based on meter size and the number of recycled water units used each month. A unit of recycled water equals 748 gallons. 2. 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. This increase is necessary due to increased power costs to the District. Consumption Fees by Meter Size Other Charges Footnotes Recycled Water Usage Fee1 ( 3/4" to 1.0" meter) Recycled Water Usage Fee1 (1 1/2" to 2.0" meter) Consumption Blocks (units)1 Current New Consumption Blocks (units)1 Current New 0 - 42 $2.84 $3.02 0 - 168 $2.84 $3.02 43 - 97 $2.88 $3.06 169 - 402 $2.88 $3.06 98 or more $2.94 $3.12 403 or more $2.94 $3.12 Recycled Water Usage Fee1 (3" & 4" meter) Recycled Water Usage Fee1 ( > 6" meter) Consumption Blocks (units)1 Current New Consumption Blocks (units)1 Current New 0 - 403 $2.84 $3.02 0 - 7,916 $2.84 $3.02 404 - 820 $2.88 $3.06 7,917 - 16,357 $2.88 $3.06 821 or more $2.94 $3.12 16,358 or more $2.94 $3.12 Current New Energy Charges2 $0.044 $0.045 This information reflects only changes to rates. For a comprehensive listing of rates, please see the Otay Water District’s Code of Ordinance at www.otaywater.gov.