Proposed Pleasanton Water Plan Would Eliminate Senior Discount

PLEASANTON, CA — The Pleasanton City Council will consider a new water rate plan that could eliminate a longstanding senior discount, according to a staff report. The proposed changes, which are recommended by city staff, would implement a new water pricing structure and a revision of customer assistance programs.

The proposal would eliminate the senior discount, which currently offers 20% off water and sewer charges for Pleasanton residents 65 and older who consume 30 units or less per billing period, regardless of income. This discount is paid for by the General Fund, and costs it approximately $300,000 per year, according to a staff report. Staff recommends continuing a low-income discount tied to PG&E’s CARE program, which offers discounts based on financial need rather than age.

The CARE program offers a 20% discount to a household of one to two people making a total gross annual income of $40,880 or less, or who are enrolled in public assistance programs like SSI, SNAP, Medi-Cal, or others.

Staff is also recommending a new water rate structure that would institute fixed charges alongside a uniform usage rate, rather than the current tiered system based on usage. The new uniform usage rate would charge $8.93 per 100 cubic feet of water used. Because more of the bill would come from fixed charges, lower-usage customers would pay more, while high-usage customers could see their bills decrease. For example, a household using 5 ccf per billing cycle could see their bill rise from $54.76 to $86.83, a 59% increase in Year 1, not accounting for any potential lost discounts. Meanwhile, a household using around 70 ccf could see their bill drop by around 14 percent.

The new pricing system would recover 100% of Zone 7 Water Agency’s fixed costs through fixed charges.

If the council votes in these changes, they will go into effect after the previously-approved increases for 2024 and 2025, and will be used to determine water rates from 2026 to 2030. In March, the city council approved projected rate increases of 15% in 2026-7 and 8% in 2028-9, but those percentages were estimates, rather than formally adopted rates. The city said at the time that actual rates would be calculated during a later cost-of-service study, which recommended the changes above.

The meeting will take place Tuesday at 7 p.m. at the Pleasanton Civic Center. See here for the full agenda, and go to page 203 of this packet or the city’s water website for more information.