Overview

• The proposal would raise water rates by 14.7% in 2026, 14.5% in 2027, 11.5% in 2028 and 11.0% in 2029, with wastewater increases of 6%, 6%, 8% and 8% over the same years.
• Higher costs to buy water from the San Diego County Water Authority drive much of the increase, alongside rising energy, chemicals, maintenance and treatment expenses and declining sales and flows.
• PUD officials say earlier steps softened the hikes, including $100 million from rate-stabilization funds, $83 million saved by using reservoir supplies, $67 million from delaying capital projects and $90 million from postponing a pipeline assessment.
• If approved, monthly water service charges for a 1-inch meter would move from $46.63 to $56.83 in January 2026, $65.08 in 2027, $72.57 in 2028 and $80.56 in 2029.
• The IBA urges at least adopting the FY2026–FY2027 increases to avoid staff or capital cuts, noting the water system faces its tightest finances in FY2027, while the wastewater system is relatively healthier after recent rate adjustments.