Citing anticipated increases in future operating expenses and capital costs, the Castaic Lake Water Agency (CLWA) Board of Directors voted to increase water rates for its Santa Clarita Water Division.
The increase is in advance of anticipated revenue shortfalls of $3 million in 2007, $5.2 million in 2008 and $6.6 million in 2009, according to a memo sent to the Castaic Lake Water Agency Board of Directors.
The Santa Clarita Water Division explained further that the price increase would affect approximately 27,500 customers beginning in March.
The price change is also proportional and based on a number of factors.
“It depends on how much water we buy from Castaic Lake Water Agency,” said John Garon, the Assistant Retail Manager for the Santa Clarita Water Agency. “Now we’re buying about 60% of our water from CLWA, and pumping the rest from our wells. If we buy less than 60%, then the reduction in price will be passed on to our customers.”
It also matters how much water people use. According to the memo, people who use less than the average consumption will experience a less than average increase and people who use more than average will experience a larger increase.
It cites examples such as: someone who uses 31 hundred cubic feet (Ccf) of water per month would get a 16.5% rate increase. Someone who uses only 3 Ccf per month would get a 15% increase.