The rates you pay for water, recycled water and wastewater cannot be higher than the actual cost to provide this service. The City of Carlsbad and Carlsbad Municipal Water District conduct regular “Cost of Service” studies to determine this cost. Some of the things that affect the cost (and your rates) include:
• Increasing cost of buying imported water from the San Diego County Water Authority
• Major investments needed to maintain aging pipes, pumps, treatment facilities and other infrastructure
• The cost of some supplies and materials have doubled in recent years.
The cost-of-service study evaluated revenues, forecasted costs and changes due to customer water conservation. This information is used to determine what changes are needed to rate amounts and rate structures. The study found that the current rates were not meeting the rising revenue requirements to deliver water and collect and treat wastewater. There were no rate increases for wastewater customers for a period of four years starting in 2016, but wastewater collection and treatment costs have risen.
Rates are structured to distribute the cost of water and wastewater fairly to each customer based on usage.