San Diego Eliminates Tiered Water Pricing

San Diego water rates change in January when the city drops its tiered pricing system for single-family homes.

The San Diego City Council voted 6 to 2 on Tuesday to approve the new billing structure. The move follows a lawsuit filed in 2015 that challenged the city's existing rate system. City leaders acknowledged that they disagreed with the court's ruling but stated they were legally required to comply. A staff member presenting the item to the council said the city was legally obligated to adopt a structure the court deemed valid.

Under the previous system, residents who used less water paid lower rates per unit. Those who used more water, such as households with large lawns or pools, paid higher rates. The new structure eliminates these tiers. It bills customers solely based on the volume of water they use. The city estimates that the average monthly bill for a low-consumption customer will rise by about $6. Conversely, the bill for a high-consumption customer is expected to drop by $20.

Councilmember Sean Elo-Rivera, who represents District 9, expressed frustration during the Tuesday meeting. He described the change as a penalty for conserving water. Elo-Rivera stated that he was angry because the city was being forced to impose a penalty on residents for using less water.

Resident reactions have been mixed, particularly in a region that frequently faces water shortages and drought conditions. Isabel Jordan, a local resident, said she initially believed all customers should pay the same rate. However, she later understood the logic behind subsidizing efficient consumers. Jordan noted that Southern California is in a water crisis with constant scarcity. She said she eventually understood the incentive behind the previous system, which rewarded those who used less water.

The city attempted to appeal the court decision but was unsuccessful. San Diego is now responsible for a $40 million settlement. The modified billing structure will take effect in January. A previously approved water rate increase will also begin at that time, separate from the structural change.

A city representative acknowledged that even a moderate increase could impact households that have made efforts to conserve water. The changes affect single-family homes in San Diego. The new system removes the financial advantage that low water users previously enjoyed.