April 29, 2021

CVWD Issues Notice of Public Hearing Over Rate Increases

Staff & Wire Reports

Coachella Valley Water District (CVWD) is proposing to adjust water rates for some services for fiscal years 2022 through 2026.

CVWD has announced proposed rate increases and public hearings for domestic water, canal water service and for the Replenishment Assessment Charges (RAC) for groundwater producers in the East and West Whitewater River Subbasin Areas of Benefit.

The Board of Directors April 20 approved mailing notices to domestic customers, mandated by Proposition 218, that discuss the need for rate increases and announced a public hearing on June 8. If approved then by the Board, the rate increases for residential and commercial customers will take effect July 1.

Proposition 218 notices were sent March 12 to canal water service customers and on April 16 to those responsible for East or West Whitewater River Subbasin RAC payments.

“The rates CVWD charges for water service reflect the true cost to provide that service, protect the District’s financial stability and its ability to provide the same level of service in the future,” said CVWD Director of Finance Geoffrey Kiehl.

Proposed changes for domestic water include increasing the monthly service charges for smaller meters and the Tier 3 consumption rate and decreasing the Tier 1 and 2 consumption rates.

A cost-of-service study conducted since February 2020 recommended rate increases. It found that the District’s operating costs are increasing faster than the current rates and charges can support. Among specific concerns:

  • Utility costs are increasing, such as for electricity to operate groundwater pumps and the distribution system.
  • Capital investments are needed to repair and replace District assets, some of which are approaching the end of useful service.
  • Rates need to reflect the current cost of service to each customer.

The June 8 hearing for domestic water service rates will be held at 8 a.m. A public hearing for proposed RAC rate changes is scheduled for 1:30 p.m. June 2.

For more information on the proposed increases visit www.cvwd.org/ratechanges.

CVWD serves approximately 108,000 residential and business customers across 1,000 square miles, located primarily in Riverside County, but also in portions of Imperial and San Diego counties.

 

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