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Water Rates <br />MMMhW- Am, .__ i <br />3 <br />' Defer Water Rate Increase <br />► SFPUC previously raised wholesale water rates more than needed <br />Excess wholesale funds accrued in a "balancing account" <br />► SFPUC has deferred raising water rates while it draws down the <br />"balancing account" <br />No wholesale water rate increases projected for a few more years <br />City plans to temporarily defer water rate increases <br />Transition to water rate increases on January 1, when water use is low <br />► Small annual rate increases projected in future years <br />r OK to defer a rate increase on a short-term basis <br />➢ But results in need for more rate increases in subsequent years <br />➢ Small annual increases generally preferable to less -frequent rate spikes <br />4 <br />A <br />25 <br />