The San Diego County Water Authority has proposed a 3% wholesale water rate increase for 2027, with similar adjustments preliminarily expected through 2032, according to the agency. The Water Authority says the recommendation is below inflation and lower than earlier projections after two water-transfer agreements signed this spring.

The agency sets wholesale water rates each year and provides planning guidance to its 22 retail member agencies. The Water Authority said tap-water costs are ultimately shaped by both wholesale charges and the local costs of each retail provider.

That matters in Santee because Padre Dam Municipal Water District buys imported water through the regional system and then sets local customer rates based on its own costs, infrastructure needs and policy decisions. A 3% wholesale increase does not automatically mean every Santee bill rises by the same amount, but it is part of the cost stack local agencies must account for.

The Water Authority said new long-term water sales to two Riverside County agencies are expected to generate tens of millions of dollars annually for San Diego County over the next two decades. Its board is expected to vote on 2027 wholesale rates at an upcoming June meeting.