Water rates in San Diego County won’t go up next year as sharply as some feared — but the county water authority’s efforts to keep rates low are becoming a significant threat to its credit rating.
A sharply divided water authority board voted Thursday to reduce next year’s rate increase from 18 percent to 14 percent, which eases pressure on local water agencies to raise rates on their customers.
San Diego’s main water seller OK’d a less-doomy price increase than the region was expecting, setting it at 14 percent on Thursday.
To make that work, the San Diego County Water Authority will have to find $2 million it can cut from its budget and delay some anti-earthquake-related upgrades to its biggest aqueducts. Those cuts save ratepayers from an anticipated 18 percent beginning January 1. But 14 percent is still the largest annual rate increase on the wholesale price of San Diego water since 2011, Water Authority records show.
Federal grant funds, a water transfer and budget cuts helped minimize wholesale water-rate increases for 2025 despite inflation and climate impacts that are pushing prices higher.
The San Diego County Water Authority’s Board of Directors on Thursday approved a total increase of 14% in wholesale water rates for next year, while directing a one-year delay on a $7 million capital project and $2 million in additional cuts to the agency’s operating budget.
The state of Baja California will get 200 liters of water per second from the San Diego County Water Authority to help Tijuana residents during the hot summer months.
The water will be delivered through an international line that crosses the border from San Diego to Tijuana.
Despite rising water rates, the city of Carlsbad has opted against prepaying fixed charges to the county’s wholesale water supplier in exchange for discounted rates in 2025.
In late May, the San Diego County Water Authority asked its 23 member agencies, including the Carlsbad Municipal Water District, to consider a prepayment option.
San Diego County businesses and public agencies looking to replace ornamental grass with more sustainable landscaping are now eligible for increased rebates from the Metropolitan Water District of Southern California.
Metropolitan has added one dollar to its Turf Replacement Program base incentive to $3 per square foot for commercial, industrial and institutional sectors and $4 for public agencies that swap out non-functional grass with California Friendly® and native landscaping.
Funding for the program is provided by a $30 million grant from the California Department of Water Resources.
Landscape makeovers can still be lush and colorful while conserving water.
“We’ve made huge gains in water-use efficiency in Southern California, and businesses and public agencies have the opportunity to help us further that progress,” said Metropolitan Interim General Manager Deven Upadhyay.
“By switching to landscaping that is both beautiful and sustainable, they can help our region better adapt to our changing climate while cutting costs and demonstrating leadership in sustainability in their communities.”
The rebate also helps businesses and municipalities comply with new state legislation taking effect in 2027. Assembly Bill 1572 phases out the use of potable water to irrigate non-functional grass that is not used for recreation or other purposes.
“It’s a great opportunity to reduce the cost to eliminate non-functional turf before the state’s watering ban (AB1572) takes effect,” said Debby Dunn, senior water resources specialist at the San Diego County Water Authority.
For assistance, contact or 858-522-6745.
The Panorama HOA in Lake San Marcos achieved beautiful results from its landscaping makeover project, which will conserve water and preserve the region’s watershed. Photo: Vallecitos Water District
Projects in the unincorporated areas of San Diego County can receive an addition $1 per square foot for their turf removal projects
In an effort to help expand our region’s tree canopy and promote sustainability, a newly launched rebate provides an additional $100 per tree incorporated into projects. Both commercial and residential participants can receive this rebate for up to five trees per project.
Rebates are available to help property owners in unincorporated areas reduce expenses, providing significant savings on outdoor landscapes.
Metropolitan’s Turf Replacement Program has directly resulted in the removal of over 220 million square feet of grass. This saves enough water to serve about 68,000 households each year.
Conservation programs play an important role in the region’s water supply reliability. Today, about 2.5 million acre-feet of the record 3.4 million acre-feet Metropolitan holds in regional storage is water that has been conserved and stored instead of being consumed. That conserved water has been instrumental in staving off additional and more widespread calls for mandatory water cutbacks.
“We know the challenges ahead will require us to think differently and make the right investments in our infrastructure and water supplies,” said Metropolitan board chair Adán Ortega, Jr. “We appreciate the tremendous work the public has done to help us become more resilient to our extreme weather patterns and look forward to the continued progress that we can achieve as a region.”
For more information on Metropolitan’s conservation initiatives and rebate programs and to apply for a commercial, industrial, institutional or public agency rebate, visit bewaterwise.com/turf.
San Diego water rates will go up by 5.2%. This increase, approved by the City Council last September, includes a 1.8% charge from the San Diego County Water Authority to cover higher costs of imported water and other services.
The rate hike will help fund essential upgrades to the city’s water infrastructure, such as replacing old pipelines and supporting projects like Pure Water San Diego, which aims to ensure a reliable water supply.
After hours of debate, San Diego’s water importer (because the region has to buy most of its water from outside the county) decided to raise rates just a smidgen – and put off the doom-iest part of its proposed water price spike until next month.
Why? Well, a lot of local water district representatives (there are 33) weren’t comfortable with how the city of San Diego (the region’s biggest and most powerful water buyer) wanted to try and stave off bigger rate increases. And the city, which has the power to ram through anything it wants, hit the pause button instead.
In times of crises, water utilities stand together to support public safety and reliable service. This was the case recently when the City of Calgary’s water infrastructure suffered a critical blow. On June 5, the City of Calgary issued a notice to the public about a 78-inch feeder main break after reports of massive streams of water spewing out of the ground. The city quickly enacted water restrictions to conserve water. Further evaluation showed that the break was more complex than initially thought, prompting a state of local emergency.
Local water bills might not be going up quite as sharply next year as expected.
The County Water Authority’s board tentatively shrank a proposed rate hike for wholesale water from 18 percent to 14 percent on Thursday — despite concerns the move could hurt the water authority’s credit rating. An increase in wholesale rates will force nearly every local water agency to pass on the extra costs to its customers, but just how much gets passed on could vary widely.
