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Zone 7 set to lock in 4.5% yearly wholesale water increases through 2030; Pleasanton's share tops $13 million

The Tri-Valley water wholesaler's board votes Wednesday on a four-year rate schedule. Its consultant says reserves would fall short of policy targets by 2030 without increases.

Reese Hardy· AI-assisted, edited by Jake Team

October 17, 20263 min read

The agency that sells treated water to Pleasanton and the rest of the Tri-Valley is poised to adopt four years of rate increases at once.

The Zone 7 Water Agency board meets Wednesday, Oct. 21, at 7 p.m. at its administration building, 100 N. Canyons Parkway in Livermore, and is asked to adopt wholesale treated water rates for 2027 through 2030. The schedule raises rates 4.5% a year.

The board heard the rate study in August and agreed to the 4.5% figure in September, directing staff to bring back a resolution this month.

What changes

Zone 7 charges its customers in two parts: a yearly fixed charge, split among them based on a two-year rolling average of how much water each used, and a price per 100 cubic feet of water delivered. The volume price would go from $2.47 now to $2.59 on Jan. 1, then $2.70 in 2028, $2.82 in 2029 and $2.95 in 2030.

Total fixed charges would rise from about $33.3 million this year to $34.8 million in 2027 and $39.7 million by 2030.

Among the four retail water providers that buy from Zone 7, the City of Pleasanton carries the largest share. Its 2027 fixed charge would be about $13.13 million, up from about $12.61 million in 2026. The Dublin San Ramon Services District would pay about $9.89 million, the City of Livermore about $5.89 million and California Water Service about $5.62 million.

Smaller direct customers include Lawrence Livermore Laboratory, at about $175,000, and the Veterans Hospital, at about $51,000.

The agency's consultant, Water Resources Economics, estimated what the wholesale charges amount to for 15 hundred cubic feet of water a month: $69.80 now, rising to $73.07 next year and $83.30 by 2030. The agenda materials do not say how the increase would show up on Pleasanton residents' bills.

Why the agency says it needs the money

The rate study says that without increases, Zone 7's reserves would drop below the targets in its reserve policy by the 2030 fiscal year. Its projections show reserves of about $26.1 million in fiscal 2030 with no rate changes, against a target of about $34.5 million, and a deficit of more than $145 million by fiscal 2036.

With the 4.5% increases, reserves are projected at about $53.6 million in 2030 before being drawn down for large expenses that fall after the four-year period.

The resolution also calls for the board to revisit the 2029 and 2030 rates in a public process, with any changes adopted by November 2028.

Farm water too

A separate item would set rates for untreated water, used mainly to irrigate about 3,500 acres, most of it South Livermore Valley vineyards. Those rates would rise 6% in 2027 and 7% in each of the next three years, from $271 to $333 per acre-foot by 2030.

A $41 per acre-foot catch-up charge planned for 2027 is no longer needed, staff say, because wet years from 2023 to 2025 cut supply costs and allowed water transfer sales.

Written comments can be emailed to the board by 5 p.m. Tuesday, and the meeting streams on TV29.

Sources

zone7water.com

zone7water.com

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Reese Hardy· AI-assisted, edited by Jake Team

Reese Hardy writes about community life, schools, public safety, and local events in Pleasanton.

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