Why are rate increases needed?

Just like our customers, the District is also subject to the current inflationary environment. Here are some examples of increases in major cost components:

  1. We are paying more for water supply (16% increase by one of our major wholesale providers, the San Francisco PUC – and we are currently using more of their water due to its availability during the drought).
  2. Costs to build and renew infrastructure needed to provide reliable water service are increasing (13.7% annual increase in the regional Construction Cost Index).
  3. Increasing costs for chemicals, energy, and other materials and supplies.
  4. Substantial costs to address new water quality regulations, including construction of a new water treatment facility.
  5. Negotiated wage increase of 3.25% this year, which is well below inflation.

Show All Answers

1. Why are rate increases needed?
2. Why are drought surcharges needed? There is plenty of water.
3. Why do you keep coming to us for money to fund employee salaries and benefits?
4. We’ve seen record-breaking rainfall. How can you still say we are in a drought?