Financial Benefits for Customers After Historic Detachment 

Rainbow Water began to receive water from the Eastern Municipal Water District (EMWD) after detachment finalization from the San Diego County Water Authority (SDCWA) on November 1, 2024. The landmark change made a significant step in Rainbow Water’s commitment to securing cost-effective and reliable water supplies for its customers. As part of the last requirements by the Local Agency Formation Commission (LAFCO), Rainbow Water paid the first exit fee payment of $3.2 million to SDCWA, to certify the reorganization.

Stabilizing Water Rates

The most significant form of relief for customers includes avoiding a rate increase in January 2025, as the change in wholesaler shields Rainbow Water’s customers from SDCWA’s wholesale water rate increase of 14% on January 1, 2025, and the proposed increase of over 16% on January 1, 2026. 

Rainbow Water will absorb the impacts of the 3.6% imported water pass-through increase from Metropolitan Water District. This equates to approximately $1.7 million annually in savings for customers due to the lower cost of water. Rainbow Water intends to hold rates flat at a 0% increase through January 1, 2026. The 18-month budget timeframe reflects the significant savings in wholesale water purchases despite other cost pressures within Rainbow Water. New development projects in the service area will also benefit, with capacity fees set to decrease by 31-48%, depending on meter size, from current levels, reflecting the elimination of previous SDCWA imposed charges that are not applicable with wholesale purchases from EMWD. 

What Would Happen to Rates in 2025 without Detachment?

The infographic at right illustrates the impact of wholesale rates to Rainbow Water customers with EMWD and a comparison to what rates would have been had Rainbow Water remained with SDCWA.