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2021 Annual Report
2021 Annual Report

2021 Annual Report

Innovation and
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Board Sets 2022 Water Rates

The Water Authority’s Board of Directors in June 2021 approved water rates and charges for 2022, following a public hearing. The all-in rate, which is a blend of fixed and variable rates, will rise by 3.6% for treated water and 3.3% for untreated water in calendar year 2022, due to more rate increases by the Metropolitan Water District of Southern California, continued payments for past investments in supply reliability, and inflationary pressures on energy, chemicals, and construction materials. Actual water bills will vary based on customers’ water use, along with factors unique to their local retail water agencies.

Although the Water Authority’s budget spans two fiscal years, the agency sets rates annually to manage changing conditions more effectively. The Water Authority developed its 2022 water rates in conjunction with an independent cost-of-service study to ensure rates and charges comply with state law, legal requirements, cost-of-service standards, and Board policies.

The water rates for calendar year 2022 include strategic withdrawals from the Rate Stabilization Fund. To reduce 2022 rate increases by approximately $65 per acre-foot, the Water Authority plans to draw $25 million from the agency’s Rate Stabilization Fund. The fund was created in 1990 to help avoid rate spikes, especially those driven by reduced water sales. The rate proposal also included strategic management of the Water Authority debt portfolio resulting in $130 million in net present value savings from several refundings.

“I’m proud of this budget and rates package in an era of unprecedented challenges. We have contained costs while benefitting from strategic investments in water supply reliability that protect the region’s $253 billion economy and 3.3 million residents from statewide drought conditions. This achievement is only possible due to collaboration with our member agencies, strategic guidance from the Board, and the dedication of agency staff.”
Gary Croucher
Board Chair
Water Authority

“Thanks to prudent financial planning and debt management, we are able to keep the proposed rates at the low end of our projections. We’ve worked hard to control rates while maintaining a complex water production, treatment and delivery system that will continue to support the region for generations.”
Lisa Marie Harris
Finance Director
Water Authority