HomeMy WebLinkAbout2012 Rate Increase Notice - Residential Water ServiceNotice of Residential
Water Rate Increase
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley, CA 91978
www.otaywater.gov
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. This 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
from suppliers including 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. In addition, rate increases cover the higher cost of acquiring imported
water from the Colorado River and Northern California.
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 its 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 that five-year schedule of rates.
Customers interested in learning ways they can reduce their water usage to minimize the effects of
the higher cost of water can visit the District’s Conservation page at www.otaywater.gov. Additionally, the
Water Conservation Garden located in Rancho San Diego offers various conservation exhibits and
classes. To learn more about the Garden, visit www.thegarden.org. For more information about the
District, please go to www.otaywater.gov or contact us via email at info@otaywater.gov.
Typical Bill for 15 HCF2 (or Units) per Month
New Rates and Fees
MWD/CWA1 System Fee1 Water Rate2 Energy Charge4 Water Charge by
Improvement District5 Total6
Current $11.82 $14.58 $38.10 $2.34 $0.88 $67.72
New $14.01 $14.58 $40.45 $2.36 $0.85 $72.25
Increase in monthly water bill: $4.53
Single Family Consumption Blocks
(Units or HCF)2 Current New
Conservation Tier3 $1.49 $1.58
6 - 10 $2.31 $2.45
11 - 22 $3.00 $3.19
23 + $4.63 $4.92
Current New
Meter Size System Fee MWD/CWA Total System Fee MWD/CWA Total
3/4” $14.58 $11.82 $26.40 $14.58 $14.01 $28.59
1” $18.52 $19.69 $38.21 $18.52 $23.33 $41.85
1 1/2” $28.37 $39.44 $67.81 $28.37 $46.74 $75.11
2” $40.18 $63.07 $103.25 $40.18 $74.74 $114.92
Footnotes
For a typical single-family residential customer, your bill will increase by $4.53. Your bill will
vary based on meter size, water consumption, and geographic location.
Current New
Energy Charges4 $0.044 $0.045
Improvement District5 No. 3 $0.19 $0.20
Improvement District5 No. 10 $0.27 $0.27
La Presa5 $0.08 $0.08
1. These fees are based on the meter size. The MWD/CWA fee is increasing to reflect the full pass-through of this cost by the District’s water
suppliers. 2. This cost varies based on water usage and can be
calculated using the consumption block tables. One unit of consumption equals 748 gallons or one
HCF (hundred cubit 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. This increase is
necessary due to increased power costs to the District.
5. This charge is a per unit charge and your bill will vary based on water consumption. Improvement
district charges do not apply to the first five units of water per month.
6. Charges collected through the property tax role (Availability Fees and general obligation debt) are
not included in this total.
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.