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.
Padre Dam Water District’s board is fed up with having to pay higher rates for the water it purchases from the San Diego County Water Authority, and voted unanimously not to go along with any rate hike unless the CWA gets serious about its long-range planning.
The five-member board took the vote after listening to a presentation by CEO Kyle Swanson (photo, right)about CWA raising the wholesale rate charged to member water agencies next year by a range between 8.2 to 12.7 percent. At one point, CWA was considering increasing to about 13 percent, but the range is ever-changing and unknowable at the current time, Swanson said.
