07-17-2019 – Board of Directors approves rate study firm

BCVWD Board of Directors approves rate study firm

The Beaumont-Cherry Valley Water District (BCVWD) is conducting a Water Rate Fee Study to evaluate current rate structures and related cost of service. The need for a rate study is based on a number of factors:

• BCVWD’s most recent 5-year rate increase plan was implemented in 2010, making the District due for another rate and fee analysis.
• New state water-efficiency legislation (AB 1668 and SB 606) will require the District to meet new water use objectives and reporting requirements, replace aging pipes and mains to prevent leaks, and update drought plans. Meeting the legislation’s requirements will increase costs for BCVWD.
• The price of electricity, operating expenses and other costs to deliver water have increased over the last five years.
• The amount it costs to purchase imported water has significantly increased. Our wholesale water provider, the San Gorgonio Pass Water Agency, raised rates by $82 per acre-foot ($317 per acre-foot to $399 per acre-foot), effective May 1, 2019. This increase means it costs more money for BCVWD to purchase water from the agency.
• Costs associated with the Ten-Year Capital Improvement Plan, which was updated in 2018, are not reflected in current rates.

The BCVWD 2019 Water Rate Fee Study will be conducted by an independent financial expert. On May 8, 2019, the Board of Directors approved an agreement with Raftelis Financial Consultants, Inc., a well-regarded consulting firm based in Southern California, to conduct the study.

“As we explore our next water rate study, the BCVWD Board is committed to informing rate payers of the true cost of delivering clean water to their homes and businesses,” said Board Director Andy Ramirez.

According to state law, BCVWD is required to charge customers only for the actual cost of water, no more and no less. Raftelis Financial Consultants, Inc., will analyze pricing for water, cost of service, potential rate structures and multi-year financial plans. Any rate changes that occur based on the study will continue to be subject to additional increases by the San Gorgonio Pass Water Agency in 2020 and beyond.

BCVWD is dedicated to keeping its customers and stakeholders informed throughout the process. There will be an opportunity for formal public comment on any proposed rate changes.

Proposed rate study timeline pending final approval