EBMUD Studies Two-Year, 12 Percent Rate Hike

East Bay Municipal Utility District customers could see their water rates increase by 12 percent over the next two years under a proposal being discussed by the water agency's board of directors.

At a special budget and rates workshop on Tuesday, board members directed district employees to study a plan to raise rates by 6 percent on July 1 this year and another 6 percent on July 1 next year, according to EBMUD spokesman Charles Hardy.

However, Hardy cautioned it is still early in the process. He said the next step would come on May 10, when agency general manager Alexander Coate presents his proposed two-year budget.

If the board decides to continue pursuing a rate hike, there will be a public hearing and vote on June 14.

Hardy said EBMUD is considering a rate hike because its costs are going up but its revenues are going down.

He said the water agency has been hit by rising gas prices, as it has a large fleet of trucks, as well by higher prices for chemicals that are used to treat water.

In addition, EBMUD's 1.4 million customers in Alameda and Contra Costa counties are using less water than expected, Hardy said.

He said the water agency had projected that customers would use an
average of 190 million gallons of water a day but they're only using 161
million gallons of water daily.

He said EBMUD has also taken other measures to balance its budget
in recent years, such as not filling positions that open up when employees
retire or take other jobs.

The proposal comes as EBMUD has a healthy supply of water. This year's rainstorms have filled the district's reservoirs and provided an above-average snowpack.

Bay City News Services contributed to this report.