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Sdbuzz > Blog > Opinion > Clear Communication Needed for Ratepayers as Water Rates Rise
Opinion

Clear Communication Needed for Ratepayers as Water Rates Rise

By San Diego Buzz Team Last updated: July 13, 2024 3 Min Read
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Clear Communication Needed for Ratepayers as Water Rates Rise

Karen is a licensed civil engineer who lives in Bonita.

Last year’s wet winter in San Diego County provided an opportunity for the San Diego County Water Authority to make a strategic move towards a cheaper water supply, ultimately benefiting its member agencies by lowering future rates. Local water agencies with access to abundant local reservoirs also took advantage of the rainfall by reducing their budget for wholesale water purchases, shielding their customers from immediate rate hikes imposed by the San Diego County Water Authority.

However, for residents and businesses served by the Sweetwater Authority, the introduction of new water rates last month brought significant changes that may not be easily understood by ratepayers. A public hearing revealed that while an exhibit presented a minimal 0.5 percent increase in 2024 compared to 2023, the reality is that residents with average water usage will see a nearly 7 percent increase in their water bill. This discrepancy in rate explanation raises questions about the transparency of the rate adjustments.

In addition to the lack of clarity in rate communication, the Sweetwater Authority’s accumulation of surplus revenue and unspent funds for future projects sparks curiosity among ratepayers. With over $14 million in surplus revenue and $18 million in unallocated construction funds, the decision to increase rates instead of utilizing these reserves for water purchases during droughts or capital projects leaves some customers puzzled.

Moreover, the rate structure favoring customers with lower water consumption levels has drawn criticism for its intentional bias. The tiered rates and fixed meter charges disproportionately affect single-family residential customers and have not been adjusted to align with industry standards, despite a consultant’s initial recommendations to do so.

At the heart of the issue lies the discrepancy between rate structures and water supply sources. While tiered rates reflect the agency’s four water supplies, the Tier 4 rate appears to unfairly impact a small segment of customers, especially those in Bonita with larger properties. This discrepancy raises questions about the fairness and consistency of the agency’s rate-setting practices.

Ultimately, the importance of transparent communication and fair pricing strategies in the water industry cannot be overstated. As water agencies navigate the complexities of rate structures and water supply management, it is crucial for them to prioritize clarity, fairness, and consistency in their dealings with customers.

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San Diego Buzz Team July 13, 2024 July 13, 2024
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