Understanding Your Water Rates
Zone 7 is committed to providing safe and reliable water to our customers at a reasonable price.
We set water rates each year that allow us to take a proactive approach to protecting our water system, preparing for emergencies, replacing and upgrading equipment, and preventing system breakdowns in order to avoid service disruptions and increased costs for our customers.
How does Zone 7 set water rates?
To better understand your water rates, it helps to understand where your Zone 7 water comes from.
Approximately 70 percent of Zone 7’s water supply starts as snowmelt in the Sierra Nevada Mountains and is imported more than 100 miles to the Tri-Valley from the State Water Project through the Delta and South Bay Aqueducts.
Once that imported water arrives to the Tri-Valley, Zone 7 either stores it in the local groundwater basin for future or emergency use, or treats the water for delivery to four local water agencies – the City of Pleasanton, the City of Livermore, Dublin-San Ramon Services District or the California Water Service Company – that each then deliver it to customers as drinking water. These agencies are responsible for delivering the water to customers and sending water bills.
Water Service Rate Documentation
Treated Water Service Rates for Calendar Years: 2023 - 2026
Following a public rate-setting process which included a Water Supply Evaluation Workshop in August 2022 and four additional public meetings to review and adopt wholesale water rates for 2023, 2024, 2025 and 2026, the Board of Directors in a 5-2 vote approved a water rate increase for calendar years 2023 through 2026. The overall annual increase is 5.5% per year. The Board will revisit the rate schedule for calendar years 2025 and 2026, through a public process, with any changed rates adopted by November 2024.
The approved rate increase is essential to construct, maintain and repair the crucial infrastructure that keeps customers’ water safe and consistently flowing to homes and businesses.
Treated Water Service Rates for Calendar Years: 2019 – 2022
Following a public rate-setting process, the Board of Directors in a 4-3 vote approved a water rate increase for calendar years 2019 through 2022, subject to the Board revisiting the rates after two years. The overall annual increase is 6.7% per year. In 2020, the Board voted to postpone the scheduled rate increase.
Treated Water Service Rates for Calendar Years 2017 – 2018
To determine the untreated water rate for calendar year 2023, Zone 7 contracted with Raftelis to conduct an untreated water rates study, incorporating the rate components approved by the Board in 2021. The process included discussions with the Zone 7 Finance Committee and untreated water customers. On October 19, 2022 the Board adopted a rate of $255 per acre-foot for CY 2023, following meaningful input from untreated water customers.
Untreated Water Service Rates for CY 2022
To determine the untreated water rate for calendar year 2022, Zone 7 contracted with Raftelis Financial Consultants, Inc. (Raftelis) to conduct a cost of service study for untreated water service. The process included discussions with untreated water customers, a workshop with the Zone 7 Board to determine the rate components, and the Zone 7 Finance Committee. On October 20, 2021 the Board adopted a rate of $204 per acre-foot for CY 2022.