What Happened to the Water Rates
Water rates went up in San Carlos and people are not happy. Cal Water implemented a significant rate increase in 2024, aiming to boost its total revenue by $140.6 million. It plans to invest more than $1.6 billion in its various districts from 2025-2027 to replace aging water pipelines, perform water quality upgrades, add generators to help withstand power outages and shutoffs, amongst other improvements.
San Carlos is in the Bayshore District (also includes South San Francisco and San Mateo), this has meant that the water prices per water ‘unit’ went up significantly for mid and higher water users but came down for low water consumers. A water unit is 748 gallons.
In 2021, the City of San Carlos was on a three-tiered water rate structure to promote conservation and ensure the equitable distribution of water resources. The rates were as follows:
- 1–7 units : $7.24 per unit
- 8–10 units: $9.05 per unit
- Above 10 units: $13.56 per unit
Plus a $29 service charge for homes without fire sprinklers.
Then Cal Water rates increased in August 2024 resulting in the following billing structure:
- 1–6 units: $3.45 per unit
- 7–9 units: $13.73 per unit
- 10–13 units: $17.16 per unit
- Above 13 units: $25.73 per unit
Plus a $43 service charge for homes without fire sprinklers.
So, for the first 6 units of water, the price per unit was actually cut in about half, but it increased substantially for water usage above that.
According to Cal Water’s website “Cal Water’s rates are set by an independent, third party, state agency—the California Public Utilities Commission (CPUC)—with input from the public. We are required to file a new application every three years, so that rates reflect the actual cost of operating, maintaining, and upgrading our water system to provide safe, clean, reliable drinking water to our customers.” The website states that the Bayshore district needs 84,932 feet of water main replacements while the Bear Gulch District only needs 53,543 feet. Both districts require new water treatment facilities.
During the October 15, 2024 City Council meeting, San Carlos Mayor John Dugan said he felt blindsided by the rate hikes. A representative for Cal Water told him that there was a public meeting in 2018 and another in 2021 regarding the rate hikes.
In the same meeting, Vice Mayor Sara McDowell made the comment that San Carlos is a town of only 30k people while South San Francisco and San Mateo combined have 170k people. She asked if San Carlos was subsidizing infrastructure upgrades in these other communities? The Cal Water rep had no answer. Another thing to consider is that South San Francisco and San Mateo both have many neighborhoods that are far older than many in San Carlos, so large parts of their infrastructure may also be much older?
The conclusion of the meeting was that the Council will have more meetings on the issue to amplify it. Also, they asked that more people in San Carlos to attend the public hearings held by Cal Water. Vice Mayor Sara McDowell was opting to take this issue to higher levels (the Senate and the Assembly). Meantime, Cal Water is set to have more price increases in the future.
What Does It Mean?
According to various websites, the average person uses 85 gallons of water per day, 48 gallons if there are no exterior water requirements (no yard to water). This means one person with exterior water needs uses 3.4 units per month. So, if you live alone in a condo that lacks landscaping, then your water bill went from about $43 per month to $50; a 16% increase.
However, if you’re a family of four using 13.6 units/month, then your bill probably went from somewhere around $146/month to $156/month; that’s only a 7% increase. The real damage happens in that top tier. If you’re a large family with a yard hungry for water and say you use 20 units of water per month, then your bill just went from $242/month to $354; that’s a 46% increase.
Besides the increase in rates for the top tier, what has lots of people up and arms about is that if you live in wealthy cities like Atherton, then you pay much less for water through Cal Water.
The Bear Gulch District (Atherton, Menlo Park, Woodside, Los Altos, and Cupertino) rates are as follows:
- 1 – 6 units: $2.34 per unit
- 7 – 18 units: $9.33 per unit
- 19 – 35 units: $11.66 per unit
- Above 35 units: $17.49 per unit
Plus a $41 service charge for homes without fire sprinklers.
In Atherton, if you used 20 units of water in a month, your bill would be $190 instead of $354 in San Carlos.
What Can You Do?
If your water bill is becoming unmanageable, conserving water is a helpful step, but many are already doing so. We understand that upgrading our aging water infrastructure is necessary and will incur costs. However, we want to ensure that we are paying only our fair share and that the funds are being utilized effectively. If the rate hikes truly reflect the costs of upgrading San Carlos’ water supply, it would be reassuring to know that.
Therefore, we should consider attending Cal Water meetings and contacting our local representatives to demand transparency about how the rate hike funds will be spent.
Please visit the CPUC Website Events Calendar for the next Commission Voting Meetings where public comments are welcomed. Visit the website of the CPUC for more information.
Resources
- Calwater Official Website
- City of San Carlos Public Meeting Dated October 15, 2024
- Research by Stephen Wexler, Resident of San Carlos
For More News
For more of what’s happening in and around San Carlos, please visit San Carlos Life Blog
About San Carlos Life
Mark Martinho and Vivienne Kelvin are the hosts of San Carlos Life and have been residents of San Carlos for years. While running San Carlos Life together with an awesome team, Mark and Viv are also in the business of real estate. They are co-owners of Vabrato Real Estate, a luxury real estate brokerage serving the City of Good Living, and the whole of San Mateo and Santa Clara counties.
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