Are water rates being affected by drought?
Yes. Water rates are increasing, mostly due to significant changes in the cost of purchasing and conveying water to San Diego County. The Metropolitan Water District of Southern California, the Water Authority’s main water supplier, on April 14 approved an average rate increase of 19.7 percent to take effect in September 2009. MWD also estimates it will need an additional 21.5 percent rate increase by January 2011. These rate increases are happening primarily because its costs to purchase water are increasing significantly. These rate increases get passed through to the Water Authority, which, in turn, passes them through to its member agencies, which, in turn, pass through to individual customers. The Water Authority’s costs for purchasing other water supplies also are going up, and that will affect rates as well.