During the Public Hearing of Wednesday, October 15, 2025, the Vallecitos Water District Board of Directors approved a water rate increase that will take effect on January 1, 2026. Rate adjustments are necessary to continue providing safe, reliable, and sustainable water service to our customers and are required to cover the rising cost of wholesale water imported by the Metropolitan Water District of Southern California and the San Diego County Water Authority (SDCWA) from the Colorado River and Northern California.
Approximately 75% of the District’s costs are wholesale water purchases. Additional pressures include inflation in San Diego Gas & Electric (SDG&E) electricity rates. The District is a non-profit agency, so only charges necessary to support service and delivery are billed to customers. According to Principal Financial Analyst Mike Arthur, an average customer (single family dwelling with a 5/8” meter using 13 units per month) will see a 13.2% increase in the water only portion of their utility bill. Each unit of water equals 748 gallons. For the average customer, the cost of water will increase from 1.15¢ per gallon to 1.3¢ per gallon.
There is no sewer rate increase with this action. Further, sewer rates have not increased for over 10 years.
Pump zone increases (for customers living at higher elevations) will also increase to recoup 95% of the cost of electricity to lift the water up to the pump zone. This is a direct pass-through from rising SDG&E rates.
The approved ordinance sets maximum rates for a four-year term. It caps maximum future pass-through charges from SDCWA and SDG&E at 28% annually and Vallecitos internal costs at 8% annually. However, these are maximum rates only, which are not being proposed as shown above. Additionally, the rates can never exceed the cost of providing service.
The District followed California Proposition 218 protocol, by mailing information about the public hearing to all customers impacted by the rates. Vallecitos remains committed to providing safe, reliable water and wastewater services at the lowest possible cost.
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