This is the time of year when water utilities set their rates, which almost inevitably go up. But this year, the rate hikes are likely to be higher than usual, as water utilities cope with the unexpected impact of mandatory conservation on their budgets.
On April 12, Metropolitan’s board of directors is scheduled to vote on its prices for 2017 and 2018. These prices will be passed down to customers like the San Diego County Water Authority. In turn, the Water Authority sells to retail agencies that sell to the ultimate residential, business and agricultural customers.
The act of balancing supply, demand, expenses and revenues for this bucket brigade is complicated enough in normal times. But Gov. Jerry Brown’s 2015 order for an average 25 percent reduction in potable water user upset financial calculations.
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