Millions of Californians will soon pay more for water

The San Diego County Water Authority’s Board of Directors has approved a wholesale water rate increase of up to 14% for this year.

The new rate consists of a 11% increase due to costs from the Metropolitan Water District and a 3% increase to maintain infrastructure and meet debt obligations.

The board took measures to minimize the impact of this increase through budget cuts and new funding sources. These measures included delaying a $7 million capital project for a year and implementing an additional $2 million in cuts to the agency’s operational budget.

General Manager Dan Denham expressed the agency’s commitment to minimizing costs for customers, stating, “We know cost increases are hard to swallow, and we are doing everything possible to combat rate inflation.”

The Water Authority is also applying about $19.4 million in federal grant funds to lower rates. Additionally, a new pilot program will allow local water agencies to reduce their bills by prepaying fixed costs, which can result in a smaller effective rate increase of 12.5% for some customers.

The impact of the rate increase will vary for each customer, depending on their water usage and how local agencies manage costs.

Considering these changes, San Diego is also in the middle of a citywide project to replace over 280,000 water meters with “smart meters.” Now more than ever, it’s essential to highlight the benefits of Advanced Metering Infrastructure.

AMI technology enables more accurate billing, reduces water loss through real-time leak detection, and empowers customers with data on their usage patterns. This not only helps individuals manage their water consumption more effectively but also supports the water authority in maintaining sustainability and efficiency.

With MeterSYS, our stakeholders benefit from having AMI experienced technicians and subject matter experts augment internal staff to leverage resources, provide hands-on training, and real-time troubleshooting.

For more information about the new rates and budget details, you can refer to the agency’s Board press release here.

_{Zychowicz, Kathryn. “New Revenues, Budget Cuts Trim Wholesale Rate Increase for 2025.” San Diego County Water Authority, 25 July 2024, www.sdcwa.org/revenues-and-cuts-trim-rate-increase-for-2025/.}

_{“City’s Public Utilities Department Moves Ahead with Smart Metering Project for Water Customers.” City’s Public Utilities Department Moves Ahead with Smart Metering Project for Water Customers, www.insidesandiego.org/citys-public-utilities-department-moves-ahead-smart-metering-project-water-customers. Accessed 10 Mar. 2025.}