San Diego residents will pay a much higher rate per gallon of water than local business and industry under the rate hike expected to pass the City Council on Monday.

The new rate structure proposed by Mayor Jerry Sanders charges the average single-family residential customer 30% more for a gallon of water than the average business will pay.

For 10,000 gallons of water, the amount used by an average household in a month, residents will pay $46, an increase of $5 or 12 percent over current rates.

Commercial and industrial customers use far more water, but their new per-gallon rate translates to $35.50 for each 10,000 gallons. The commercial rate will rise only 2.4 percent.

Condos and apartments will be hit with the largest increase, a 19% jump in water rates.  The rate for multi-family residential customers is now lower than the commercial rate, but will leapfrog above it.  Apartment and condo dwellers’ cost per 10,000 gallons will be $36, an increase of $6.

The disproportionate increase for residential customers is revealed in an analysis released today by the Center on Policy Initiatives, a nonprofit San Diego think tank.  CPI researchers analyzed data in the City’s Water Cost of Service Rate Study from December.

“This lopsided rate increase places a burden on families struggling to make ends meet,” said CPI Research and Policy Director Murtaza Baxamusa.  “Local businesses and industries should pay their fair share for this vital city service.”

If the City Council approves the increases on Monday as expected, the new rates will take effect July 1.  The single-family residential rates will rise again to $49 for 10,000 gallons the following year and more than $52 in 2009.  By contrast, the average commercial or industrial customer will be paying $40 for the same amount of water in two years and multi-family residential customers will pay $41.

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