SAN DIEGO COUNTY WATER AUTHORITY
WATER RATE PASS
-
THROUGH
PUBLIC PROTEST HEARING
DECEMBER 3, 2024
1 Due to the San Diego County Water Authority
substantially increased water rates to Poway (effective January 1, 2025)
Why are we here?
2 • 4-year rates adopted November 2, 2021
• Effective for Calendar Years 2022, 2023, 2024 and 2025 • Water purchase costs = ~60% of water operating
budget
• Adopted rates assumed 6% annual increase for
purchased water costs
Poway Water Rate Overview
3 • Authorized by California Government Code
• 20 of 23 water retail providers in San Diego County have pass-through provisions in their adopted rate structure • Poway does not
Overview of Pass
-
Through Rate Adjustments
4 • Much larger increase for 2025 to Poway vs anticipated in current rate schedule
• Projected rate Increase = 6.0%
• Actual rate increase = 13.52%
• Financial Impact to Poway = additional $1.27 million in 2025 for purchased water costs
• Water Fund cannot absorb this large wholesale water
purchase cost increase from the San Diego County Water
Authority
San Diego County Water Authority Rate Increases
5 Calculated San Diego County Water Authority Pass
-
Through Rates
Item
Water Supply Costs in
Adopted 2025
Rates
Estimated 2025 Water
Supply Costs Based on
Adopted SDCWA Rates Difference
SDCWA Costs $18,953,968 $20,220,031 $1,266,063
Demand (HCF) 3,941,112 3,941,112
Unit Cost of Service $4.81 $5.13
Required Pass-Through Adjustment ($/HCF) $0.32
6 Average Single Family Residential Customer Impact
• Current 2024 countywide water service bill under same scenario is $271/bimonthly period
• Poway has remained right at the countywide average since 2021 4-year rate adjustments
• 2025 San Diego County Water Authority increases affect all retail water service providers
1. Assumes the average residential customer has a ¾” meter and uses 29 units of water bimonthly.
2. Proposed rate increase impact for the average residential customer.
Existing
Approved
Jan. 2025
Proposed
Jan. 2025
Revenue Increase (%) N/A 8% 3.2%2
Estimated Water Bill1 $269.90 $293.41 $302.73
Impact ($) N/A $23.51 $9.32
7 • Open the public hearing, hear testimony, and accept all written protests
• Close the public hearing
• If no majority protest exists, adopt the resolution to approve water pass-through rates to be effective
beginning January 1, 2025
Recommendations
8