Water bills will spike for 140,000 San Jose residents starting July 1

Water bills will be rising for nearly a tenth of San Jose’s residents starting July 1 after San Jose councilmembers approved the rate hike on Tuesday — one of the largest increases in the region this year.

Customers under the city-run San Jose Municipal Water System (SJMWS) will see a 14% rise in their bills — about $16 extra per month. SJMWS serves roughly 140,000 residents in North San Jose, Alviso, Evergreen, Edenvale and Coyote Valley.

Officials blame the rising costs on increased prices from third-party water providers, supply and usage issues related to drought conditions and future infrastructure projects. In total, SJMWS expects to receive $8.9 million from the increase.

Councilmembers voted 9-2 for the price increase, with Councilmembers Domingo Candelas and Bien Doan voting against it.

Water usage is expected to remain the same this coming year — and costs are expected to rise in the years ahead. By 2024, water bills could go up by 15%, 11.5% in 2025 and 10% for the next seven years after that. SJMWS gets its water from the San Francisco Public Utilities Commission, the Santa Clara Valley Water District, South Bay Water Recycling and some groundwater sources.

Despite a major deluge of water from this winter’s storms, prices are unlikely to drop, city officials said. Water usage over the years has decreased because of drought conditions and a push from the state government to prioritize conservation — and water utility companies must make up for the lost revenue.

Jeff Provenzano, a deputy director at the city’s Environmental Services Department, said that decreased usage has continued throughout the storms.

“We’re seeing record low water usage,” said Provenzano during Tuesday’s council meeting. “Even though the drought is over (temporarily), there’s still a lot of pressure to maintain conservation.”

Other San Jose water services also are expecting bumps in their bills.

San Jose Water Company, which services a majority of the city’s residents, could see price increases of 10%. Great Oaks Water Company, which serves a small group of 20,000 residents, is expecting a 10.5% rise. Both of the companies would need approval from the California Public Utilities Commission to charge more.

In other South Bay cities, water rates will go up more moderately. Santa Clara expects a 9% rise, Mountain View 8%, San Francisco and Palo Alto 7%, and Menlo Park and Foster City 5%, according to San Jose’s Environmental Services Department.