Desert Water Agency adopts fourth rate increase in five-year plan
The board approved higher rates for water, recycled water and wastewater in June. New potable rates take effect January 1.
PALM SPRINGS: The Desert Water Agency Board of Directors voted June 16 to raise rates for water, recycled water and wastewater, the fourth increase in a five-year rate plan the board adopted in 2023 after a series of public meetings.
The new rates phase in on two tracks. Recycled water rates took effect July 1 and appeared on August bills. New potable water rates and the wastewater service charge take effect January 1, 2027, appearing on February bills, timed for the season when water use is typically lowest.
The agency says an independent study showed rates were not adequately covering the cost of service. As a public agency, the district cannot profit from its operations; rates are determined by the cost of delivering water and maintaining the system.
As a public agency, the water district cannot profit. Rates are set by the cost of providing service.
The five-year plan, adopted in 2023 after a series of public meetings, was designed to bring rates in line with costs gradually rather than all at once. The June vote was the fourth of the five scheduled increases, which means one more remains. Each increase has followed the same script: a cost-of-service study, public notice, and a board vote.
Where the money goes
The agency says the increases will fund upgrades to its distribution system, the network of pipelines, pumps and reservoirs that moves water across its service area. Some of that work is already visible: pipeline replacement projects are underway or scheduled in the Movie Colony East, Racquet Club Estates and Park Imperial North neighborhoods, with the Movie Colony East work starting the week of October 5.
Pipeline replacement is the least glamorous and most essential work a water agency does. Much of the valley's water infrastructure dates to the postwar building boom, and aging pipes mean more breaks, more emergency repairs and more water lost to leaks. Replacing them on a schedule is cheaper than replacing them in a crisis.
For customers struggling with bills, the agency expanded its Help2Others billing assistance program, offering income-eligible customers a one-time $300 credit per 12-month period. The expansion acknowledges what the rate increases make plain: water is getting more expensive, and the households least able to absorb the cost need a buffer.
The agency also continues its conservation programs, the other half of the desert water equation. In a region where every gallon is pumped, imported or recycled at a cost, using less remains the cheapest source of new supply.
The rate plan's fifth and final increase is still to come. The Post will cover it when the board takes it up.
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