The San Diego County Water Authority’s board on Thursday approved a wholesale water rate increase for 2026 following a public hearing.
Officials with the Water Authority said they were able to minimize impacts on ratepayers through a number of cost-saving actions as the board also approved the agency’s recommended budget for the next two fiscal years.
The final 2026 wholesale water rate increase will be 8.3%, despite ongoing inflationary pressures and the continued impacts of climate change on the Southwest, the agency said in a news release. That’s less than half of what was forecast in early 2025.
The reductions were achieved by cutting budgets across the agency, including those for capital improvement projects, operating departments, the Board of Directors and equipment replacement.
In addition, the adopted rate was lowered by third-party water exchanges and financial benefits from the conclusion of litigation between the Water Authority and the Metropolitan Water District of Southern California.
“While I recognize the impact of this increase on working families around the region, the Water Authority is now on a path for smoother and smaller rate increases in the future that will provide the financial stability our region needs while still ensuring safe and reliable water supplies,” Board Chair Nick Serrano, deputy chief of staff for San Diego Mayor Todd Gloria.
Homes and businesses will feel the impact of the newly adopted rates differently, based on their water use and how local retail water agencies handle costs. As the region’s wholesale water agency, 91% of the Water Authority’s costs are driven by water purchases and treatment, debt service and infrastructure projects.
During this rate and budget cycle, the Water Authority faced increasing costs related to its main water supplies, along with the need for continued investments in the region’s decades-old water supply and delivery system.
Despite those pressures, the agency’s early investments in climate adaptation mean San Diego County has secure water supplies though it is at the end of the pipeline and has few natural water resources.
Those investments in reliability, combined with the legal settlement, create the potential for the Water Authority to transfer or exchange some of its water with other agencies to help reduce costs.
“While there’s still work to be done, a future where San Diego County can help other communities improve their water security will be a win for our ratepayers for years to come,” said Water Authority General Manager Dan Denham.
A public agency created in 1944, the Water Authority delivers wholesale water supplies to 22 retail water providers, including cities, special districts and a military base.
Read More Details
Finally We wish PressBee provided you with enough information of ( Water rate increase of 8.3% approved by Water Authority board )
Also on site :