TUD Proposes Water Rate Increases

TUD Water Rate Plan

Sonora, CA — Tuolumne Utilities District water customers could see rates increase this coming summer.

The board has called a special meeting for this Thursday at 9am to vote on sending customers a Proposition 218 notice, which is a 45-day legal requirement to notify ratepayers ahead of any increases. The board is planning to hold a public hearing on June 14 at 9am to discuss, and vote, on the increase.

See the image box for specific details. The new rates and charges for treated and untreated water service would increase total revenue by 28% in fiscal year 2024, another 2.6% in 2025, 2.4% in 2026, 1.2% in 2027 and 1.5% in 2028. The new rates would take effect on August 1st.

TUD earlier planned to increase rates last year, but the proposal was scrapped after negotiations were halted by PG&E in regards to acquiring infrastructure like Lyons and Pinecrest reservoirs. Those talks have now since resumed.

In its explanation for the new proposed rate increase, TUD states, “TUD recently completed a comprehensive long-range financial plan and cost of service study to ensure TUD has adequate revenue to continue to maintain safe and reliable service for years to come. This study concludes that the proposed rates are necessary to provide sufficient funds to pay the costs of operations, maintenance, administration, debt service, and capital improvement over the next five years. The proposed rates in this notice are also designed to establish and maintain reserves.  The District completed a separate analysis which provided a 5-year outlook of Capital Improvement Plan (CIP) costs, which was incorporated into the long-range financial plan. The projected CIP requires $8 million annually, before inflation impacts, to maintain or replace its water and sewer infrastructure, yet TUD’s current water and sewer rates provide only $4 million annually for CIP capital projects.”

More details regarding the rate plan can be found by clicking here.