Costs are rising for Monterey One Water (M1W), a public utility that provides wastewater treatment for 285,000 residents in northern Monterey County, treating about 17 million gallons daily.
Energy costs are going up, aging infrastructure needs improvements, and regulatory requirements related to equipment and operations are compounding. As a result, M1W is proposing a five-year increase in monthly service charges, with rates rising up to 8 percent annually in years two and three, and 9 percent in years four and five.
The proposed increases would affect roughly 63,000 residential and commercial customers and are scheduled for a vote by the M1W board at 6pm on Monday, June 29. If approved, the new rates would take effect July 1.
“We have about $1.5 billion worth of infrastructure out there… and about a $540 million capital expenditure plan over the next 10 years,” said Paul Sciuto, executive director of M1W, at a public information session on June 3. “That is much of what’s driving our entire budget.”
Proposed monthly wastewater rates are fixed but vary significantly by customer class. For occupied residences, rates would increase from $54 to $57.27 monthly for fiscal year 2026-27, regardless of home size or occupancy. Vacant homes are a separate class, with rates set to rise from $32.60 to $35.95.
Sciuto explained the agency evaluated alternative models, like charging based on the number of fixtures in a home or square footage, but found this was not legally permissible under California law.
Commercial customers vary widely depending on use. For example, restaurant charges are based on meals per day per seat, while hotels are per room. Hotel rates will increase from $21.65 to $23.33 per room, while other businesses, like nightclubs, are charged a flat rate that would rise from $238.40 to $247.09 per month.
Under Proposition 218, customers have until 6pm on June 29 to file a protest to the increase. If more than half oppose it, it would not go into effect.
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