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Brace for Impact: California water rates set to skyrocket—San Diego facing 70% surge

Jacob Shelton March 10, 2025

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(IMAGN) A woman drinks water during the Memorial Day flower drop ceremony at Palm Springs Air Museum on Monday, May 31, 2021, in Palm Springs, Calif.

SAN DIEGO, CA – Millions of Californians are bracing for substantial water rate increases in the coming years, with San Diego residents facing a potential 70% surge by 2030.

The San Diego County Water Authority has announced a 14% rate hike for 2025, impacting nearly two dozen municipalities, including the City of San Diego. The agency attributes the increase to rising costs associated with importing water, a significant portion of their current supply. These “passthrough costs,” beyond the agency’s direct control, are mandated by law to be reflected in consumer rates.

“We realize cost increases are hard to swallow, and we are doing everything possible to combat rate inflation now and in the future,” said Dan Denham, general manager of the San Diego County Water Authority.

The City of San Diego is particularly affected, with proposed rate hikes of 13.7% in 2026, 14.5% in 2027, and at least 11% in both 2028 and 2029. While the 2025 rate increase was negotiated down to 5.5% and will take effect on May 1st, the cumulative effect of these increases could see average single-family home water bills rise from approximately $90 to $145 or more by 2030.

These proposed increases, outlined in a city-funded budget analysis, will be presented to the San Diego City Council for a vote this fall.

Despite concerns about potential drought, the rate hikes are not due to water scarcity. The San Diego County Water Authority has invested in robust infrastructure to ensure water supply during dry periods. However, the cost of imported water and infrastructure maintenance is driving the rate increases.

The rate hikes are intended to cover “sharply rising costs for workers, imported water, chemicals, energy, construction projects and other priorities,” according to the San Diego Union-Tribune.

San Diego is also investing in local water solutions. The Claude “Bud” Lewis Carlsbad Desalination Plant, the largest in the nation, is currently operational. The city’s Pure Water program, which purifies recycled water, is set to begin in 2027 and be fully operational by 2035, further reducing reliance on imported water.

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