By: K. Braun

K. Braun — Mon, 22 Nov 2010 19:19:16 +0000

Yes, wholesale prices from the Metropolitan Water District and Water Authority are going up, but that does not justify the proposed SFID rate increase. The wholesale cost of imported water is only one component of the water district’s operating costs. The City of San Diego is subject to the same price increase as SFID, and the 12% wholesale increase will result in a 5.5% rate increase to San Diego customers. The resulting SFID rate increase necessary to cover the wholesale cost increase should be even less, since the City of San Diego imports 90% of its water, and SFID only imports about 70%. The SFID rate increase is primarily to cover the cost of facility improvement projects, which the district has chosen to fund fully from a ratepayer increase. Most water districts will finance long-term facility improvements to spread the costs out over many years, and minimize the impact the ratepayers. SFID board members chose not to acquire bond financing for their planned improvements, and that is the main reason the rate increase is so large. There are undoubtedly other reasons for the increase, which by law have to be disclosed in the Prop 218 notice for the rate increase. Blaming the Water Authority for such a large increase is not being honest.

Comments on: Increased water rates reflect rising cost

By: K. Braun