THOUSAND OAKS : City to Raise Water Rates to Offset Hike

Thousand Oaks households and businesses will have to pay more for the imported water they use, officials said Thursday.

The city will raise prices to offset a 36% increase by the Calleguas Municipal Water District. Calleguas is passing on an increase by its supplier, the Metropolitan Water District of Southern California.

The Calleguas increase will translate into a jump from $271 to $369 per acre-foot of water.

An acre-foot is 326,000 gallons of water, enough to supply two families for a year.

Officials from the city Utilities Department, California-American Water Co. and California Water Service Co.--all of which buy water from Calleguas--say they intend to pass on those rate increases to an estimated 36,400 households and businesses in Thousand Oaks.

According to preliminary estimates by Utilities Director Don Nelson, customers may pay as much as 44 cents more for every 748 gallons they use. The existing 92-cent rate would jump to $1.36.

However, a special reserve fund containing $1 million could be used to offset the price increase.

If the city decides to subsidize part of the rate increase with its own funds, customers would pay only 16 cents more, or $1.08 for every 748 gallons of water.

Nelson said the proposed rates are still under review and will be adopted after officials determine whether mandatory water cutbacks cause a drop in water consumption.

Since March, customers have faced an order to trim water use by 20% or face penalties on their bills. The cutbacks and rainy weather resulted in a 55% drop in consumption.

About 12,800 customers whose water comes from the city now pay less than those supplied by the two private companies.

California Water Service customers pay 92 cents to $1.14 for every 748 gallons they use.

California-American customers pay $1.08. Both companies will also increase rates in July, but have not determined what the new charges will be, officials said.