Pleasanton Approves New Water Rate Structure
The Pleasanton City Council has approved a revised water rate structure for residents. The new rates are intended to fund the maintenance of water service quality and ensure continued access to safe drinking water.
- The new rate structure, effective January 1, 2026, will transition all customers to a uniform, consumption-based rate. This change replaces the previous tiered system, which charged lower rates for lower water usage, a model that has faced legal challenges in California under Proposition 218 for not aligning rates with the actual cost of service. - A key driver for the rate change is the need to fund approximately $73 million in water infrastructure improvements over the next five years. These projects are part of the city's first long-term Water System Management Plan, which outlines necessary upgrades to aging infrastructure to avoid more costly emergency repairs. - Since 2022, Pleasanton has become entirely dependent on purchasing water from the Zone 7 Water Agency after shutting down its groundwater wells due to PFAS contamination. The new rate structure is designed to fully cover the fixed costs from Zone 7, which were previously only partially recovered, creating a more direct pass-through of wholesale water costs to consumers. - The financial impact on residents will vary, with low-water users potentially seeing a 112% increase in their bimonthly bills by 2029, while high-usage households may see a more moderate 34% rise. For a typical single-family home, the increase is estimated to be around $19 per billing cycle starting in 2026. - The City Council's decision was informed by a comprehensive Water Rate Study conducted by Water Resources Economics, LLC, which began in September 2024. This study provided the cost-of-service analysis and rate design recommendations to ensure the financial stability of the city's Water Enterprise Fund. - As part of the rate changes, the city's senior discount program, which offered a 20% reduction for residents 65 and older regardless of income, will be eliminated to save an estimated $400,000 annually. However, a low-income discount program will remain in place. - The city is also investing in new water sources through a cost-sharing partnership with Zone 7 to develop new groundwater wells. This project aims to restore a portion of Pleasanton's independent water supply, which historically accounted for 20-25% of its total water needs.
