Proposed Pass-Through Rate Increase FAQs

Update: April 2024

Q: Why is an increase to MPWD’s rates proposed?
A: All water provided by MPWD is water that is purchased from the San Francisco Public Utilities Commission (SFPUC). Every gallon of water provided by SFPUC is paid for directly by MPWD. SFPUC has informed us that it will be increasing our cost to purchase water as of July 1, 2024. MPWD’s customer rates are therefore proposed to be increased by the same amount that SFPUC raises costs to MPWD. There are 26 water agencies (including MPWD) that purchase water from SFPUC, and all agencies will have the same wholesale rate increase. Click HERE for a list of all agencies who purchase water from SFPUC. You can also find more detailed information about MPWD’s water supply and planning in MPWD’s 2020 UWMP.

Q: How much is MPWD proposing to increase their water rates?
A: Based on information provided by SFPUC in January, MPWD anticipates that, effective July 1, 2024, the pass-through increase for wholesale water supplied through MPWD could be as high as $0.68 per unit. SFPUC wholesale rates are based on volume purchased and do not utilize a tiered rate structure. Therefore, if MPWD’s cost to purchase water is increased by $0.68 per unit, MPWD’s proposed customer rate increase will be $0.68 per unit. If the actual cost to purchase water from SFPUC is lower, then MPWD’s actual customer rate increase will be equal to the actual change in our purchase rates. Assuming a $0.68 per unit increase, the rates for each water use tier would increase as follows:

Current Rates
0-2 units: $6.97
3-8 units: $9.80
9-20 units: $11.71

Proposed Rate Increase
0-2 units: $7.65
3-8 units: $10.48
9-20 units: $12.39

MPWD single-family customers use less than 7 units/month on average, which corresponds to an increase of less than $4 in an average monthly water bill. As an example, the increased charges with the proposed pass-through for an MPWD customer using 9 units/month are shown below.

Graphic showing example residential monthly bill before and after pass through rate change.

Q: How often does MPWD increase their water rates?
A: MPWD has not increased their customer rates except for pass-through SFPUC wholesale rate increases since July 2019. The decision was made by the Board of Directors in light of the COVID-19 pandemic, among other considerations. Below is a summary of the rate increases over the last five years:

Q: How does MPWD utilize the money collected through customer rates?
A: As a public agency, MPWD is primarily funded by our customers through rates and charges for water services. This money is used to purchase the water you use every day and to pay for business expenses including your dedicated District staff. It is also used for less visible expenses such as system operations, maintenance, replacement, and improvements. MPWD was established in 1929, and still utilizes some of the original infrastructure installed in the 1930s and 1940s. Through the Capital Improvement Program (CIP), MPWD has been systematically evaluating and prioritizing all potential infrastructure improvement projects to ensure that the District makes the most important improvements as efficiently and effectively as possible. Visit MPWD's CIP section to see more information about how MPWD is re-investing public funds to improve infrastructure and ensure a safe and reliable water supply to all of its customers.

MPWD strives to be transparent in how its funds are managed and utilized. Many financial documents, including past water rate studies and updates, are available to the public through its website which can be viewed here.

Q: How have the SFPUC wholesale rates changed for MPWD over time?
A: SFPUC periodically increases their wholesale rates to, among other things, help fund its costs of providing water service, pay for the infrastructure and treatment necessary to bring high quality water to the Bay Area, and recover costs of providing service during periods of drought and reduced water sales. Over the last 20 years, wholesale rates have increase by a total of $4.08/unit. The increase of up to $0.68/unit for FY 2024/25 would represent an up to 13.1% increase from last year's rates.

Chart showing SFPUC water rates since 2004-2005