SAN DIEGO — The San Diego County Water Authority today proposed a 3% rate increase for 2027, with similar adjustments tentatively planned through 2032.
SDCWA leaders said that while the rate hike was painful, it was below the national inflation rate and a significant decrease from earlier projections — at least partly due to two water-sharing agreements with other agencies signed this spring.
“We’re keeping our promise to working families across the region by using new revenues to minimize water rate impacts,” SDCWA General Manager Dan Denham said. “At a time when costs are rising across the board, the water authority is focused on making a real difference for San Diegans.”
The water authority inked a deal in April to supply an annual quantity of 10,000 acre-feet to the Eastern Municipal Water District for 21 years at a rate of around $1,350 per acre-foot in year one.
Additionally, Eastern will pre-purchase an additional 30,000 acre-feet for $19 million. All told, in the first five years of the agreement, the water authority would generate $74 million in new revenue.
The deal would begin with Eastern purchasing 6,240 acre-feet this year, then add around 950 acre-feet per year until the full annual quantity is reached in 2030. An acre-foot is the amount of water needed to cover one acre of land with one foot of water.
In March, the water authority and the Western Municipal Water District signed a similar long-term water supply agreement. Western will also receive a minimum of 10,000 acre-feet of water annually over the next 21 years, enough to supply around 30,000 Southern California households.
According to that deal, the partnership will generate $13.5 million annually in revenue for the San Diego County Water Authority, with the agreement expected to deliver around $100 million over the first five years after accounting for upfront payments.
Water purchased as part of the deals will be delivered through existing connections within the Metropolitan Water District of Southern California system, meaning no new infrastructure is needed.
Additionally, the water authority is working on an interstate water transfer partnership program with the U.S. Bureau of Reclamation, the Metropolitan Water District of Southern California, and agencies in Arizona and Nevada.
The plan would create a legal and regulatory framework that would allow the SDCWA to move water from the Claude ‘Bud’ Lewis Carlsbad Desalination Plant to areas in the Colorado River Basin that need additional water supplies.
The proposed rate increases will be discussed during a public hearing before the water authority Board of Directors at 9 a.m. Thursday.
