What is the “pass-through” part of the rates?

State law allows water agencies to pass-through to their customers the cost to fund increases in wholesale water costs imposed by agencies like the Sonoma County Water Agency (SCWA). The City’s 2018 rate study estimated annual wholesale water costs increases from SCWA of 6% a year. If actual SCWA charges are higher, State law allows the City to pass the difference through to customers without a further Proposition 218 hearing. The City Council would do so by resolution and customers would receive 30 days’ notice in bills.

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