San Diego utility customers will see another upcharge on their water bills starting May 1 after a 5.5% rate adjustment was approved by the San Diego City Council last week.
The city of San Diego said the rate hike passed last Tuesday was a pass-through charge necessary to cover a 14% increase approved by the San Diego County Water Authority in July 2024.
"As a result of this significant increase in SDCWA’s 2025 rates, the Public Utilities Department does not have sufficient revenue. To maintain the financial stability of the City’s water utility and ensure adequate cost recovery, the City must adjust rates to account for anticipated increases in water purchase costs from SDCWA," the city said in a notice to customers that includes a list of maximum charge depending on meter size with the pass-through rate increase.
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The SDCWA, which obtains water on behalf of 22 local agencies, said the increase would help cover infrastructure, operation and maintenance costs.
San Diego's May water rate increase is in addition to an 8.7% bump that went into effect on Jan. 1 and a 10.2% increase that took effect on Dec. 1, 2023.
"The City purchases as much as 85% to 90% of all its drinking water. When the suppliers increase the cost of this water, the City must pay more," the city said in a FAQ page on its website.
Customers will be notified by the city at least 30 days in advance of their bill changes.
This year's rate hikes are likely one of several over the next five years. A rate study conducted by Raftelis last December to forecast the city of San Diego's financial plan for FYs 2026-2029 concluded that current rates would not keep up with SDCWA costs through those years. The study recommended the following annual hikes for a total increase of 61.1% by 2029.
FY 2026: 13.7%
FY 2027: 14.5%
FY 2028: 11.5%
FY 2029: 11%
