San Diego Ends Tiered Water Pricing

The San Diego City Council approved a new flat-rate water billing structure on Tuesday, ending the tiered pricing system that charged homeowners based on consumption levels. The change takes effect in January, coinciding with a previously approved general rate increase.

The shift results from a lawsuit filed in 2015 by Daniel Patz and others, which challenged the city's method of charging different rates per unit of water. Under the old rules, households that used less water through efficient landscaping paid a lower unit price. Those with large lawns or pools paid a higher unit price. The new structure eliminates these tiers, charging all customers based strictly on volume used.

City estimates indicate the financial impact will vary by household. The average monthly bill for a low-use single-family home customer will rise by approximately $6. Conversely, high-use customers can expect their monthly bills to drop by $20. The city acknowledged that households which made efforts to conserve water face the steepest monthly price changes.

Council members voted 6-2 to pass the measure. During the session, city staff presented the agenda item and noted the administration's position. A staff member stated that the city does not agree with the court's decision in the Daniel Patz et al. v. City of San Diego case but is legally required to implement a structure the court deems valid.

Sean Elo-Rivera, the council member representing district 9, expressed dissatisfaction with the outcome. He stated that the imposition feels like a penalty for conserving water. He noted that the change is being forced upon the city and its residents.

San Diego previously appealed the final decision but was unsuccessful. The city is now responsible for a $40 million settlement related to the case. Residents have offered mixed reactions to the new billing model. Isabel Jordan, a local resident, said she initially believed all customers should pay the same rate. She later understood the incentive behind subsidizing efficient consumers, citing the region's regular water shortages and drought conditions.

The modified billing structure will begin in January. It replaces the tiered system that has been in place for single-family homes. The change applies to all single-family water customers in the city.