City talking about an 8% water rate increase

"The city's Utilities Advisory Commission voted 5-2 last week to recommend the 8% increase. The rate hike isn't final: It will go to council's Finance Committee for review and then to the full City Council for a vote in June. The 8% increase recommended by the commission is less than a previously proposed 10% increase that would add about $12.60 to a typical resident's monthly water bill."

"The city of Palo Alto buys its water from the San Francisco Public Utilities Commission, which runs the water system that brings water to the Bay area from the Hetch Hetchy reservoir in Yosemite National Park. The wholesale water expense is roughly half of the city's total cost to provide water."

"SFPUC has been raising the price of Hetch Hetchy water to pay for $4.8 billion in improvements to the water system. The Water System Improvement Program includes seismically strengthening parts of the system, with a goal of being able to resume service within 24 hours of a major earthquake."

Palo Alto's Utilities Advisory Commission voted to recommend an 8% water rate increase effective July, reducing a previously proposed 10% hike. The increase adds approximately $10 monthly to typical resident bills. This follows a 10% increase in the current fiscal year and 5% increases in each of the previous two years. Other utility rates also increased: 6% for electric, 5% for gas, and 20% for wastewater. Palo Alto purchases water from San Francisco Public Utilities Commission, which operates the Hetch Hetchy system. Wholesale water costs represent roughly half the city's total water provision expenses. SFPUC raises prices to fund $4.8 billion in system improvements, including seismic strengthening to enable 24-hour service restoration after major earthquakes.

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