Zone 7 Board Adopts Wholesale Treated Water Rates for 2027 Through 2030

The Zone 7 Water Agency Board of Directors on Wednesday, October 21, adopted by a vote of 7-0 a four-year schedule of 4.5 percent annual revenue adjustments for wholesale treated water service for calendar years 2027 through 2030. The first adjustment will take effect January 1, 2027, with subsequent adjustments taking effect January 1 of each year through 2030.

Zone 7 supplies treated water to Dublin San Ramon Services District, California Water Service Company, and the cities of Livermore and Pleasanton. Because Zone 7 is a wholesale water provider, the adopted adjustment applies to Zone 7's wholesale rates; it may not equate to a 4.5 percent increase in a resident's total water bill. Each retailer establishes its own customer rates, which reflect Zone 7’s wholesale water costs along with the retailer's own operating, infrastructure, and service costs.

"Zone 7 works hard to control costs and pursue outside funding so we can make every ratepayer dollar go as far as possible," said Zone 7 Board President Laurene Green. "These rates support the safe, reliable water our community depends on while using reserves, grants and careful long-term planning to moderate the impact."

The adopted schedule follows a comprehensive rate study and public review process. Work began in March 2026 and included 10-year financial modeling, notice mailed to approximately 101,000 Tri-Valley residents and businesses, coordination with the four water retailers, an August Board workshop, a September Board discussion, and opportunities for public comment before adoption.

The rate study evaluated the revenue needed to operate and maintain the water system, comply with changing requirements, renew and improve infrastructure, maintain prudent reserves, and continue long-term water supply reliability planning. Without additional rate revenue, the study projected that the water enterprise would begin operating at a deficit in fiscal year 2028. The adopted 4.5 percent annual adjustment is consistent with Zone 7's adopted two-year budget.

Zone 7 will use the Water Reliability Reserve over time to help fund anticipated water supply reliability investments and moderate near-term rate impacts. The study found that this planned use of reserves reduced the projected annual adjustment from approximately 4.9 percent to 4.5 percent. The reserve was established in 2025 with savings from favorable water supply years and is intended to be used over time rather than maintained as a permanent fund. The 4.5 percent adjustment is also lower than the 5.5 percent annual adjustments implemented in the previous four-year rate schedule.

Zone 7 has also worked to control costs through energy programs, cooperative purchasing, proactive maintenance and asset management. The agency has secured approximately $48.3 million in grants, maintains AAA credit ratings from Fitch Ratings and S&P Global Ratings, and recently received the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting for the tenth consecutive year.

Although the rate study modeled a 10-year period, the Board adopted rates for four years so the agency can regularly reassess changing financial conditions and project costs. Factors that may affect later rates include regulatory changes, new drinking water standards, imported water costs, changing demand, grant awards, and the development of major water supply reliability projects. Those conditions will continue to be reviewed through Zone 7's public budget, capital planning, and rate-setting processes.

For the adopted rate schedule, rate-study materials, and related Board documents, visit zone7waterca.gov/post/water-rates.
  
About Zone 7 Water Agency
Zone 7 Water Agency is one of the 10 active zones of the Alameda County Flood Control and Water Conservation District. The District was established by the State Legislature in October 1949 to solve problems of flooding, drainage, channel erosion, and water supply and conservation in Alameda County. In 1957, by popular vote, Zone 7 became a special district governed by a seven-member Board of Directors. Along with flood protection, Zone 7 supplies water to eastern Alameda County, serving a population of approximately 270,000 residents. Treated water is sold wholesale to local retailers, including the cities of Livermore and Pleasanton, Dublin San Ramon Services District, and California Water Service Company. Zone 7 also distributes untreated water to local agricultural operations and golf courses.