May 13, 2025
EBMUD proposes rates to fund water and wastewater operations for the next two years
EBMUD’s $3.2 billion budget supports critical public infrastructure
OAKLAND - Today, East Bay Municipal Utility District (EBMUD) General Manager Clifford Chan recommended proposed rates and charges for Fiscal Year 2026 (July 1, 2025) and Fiscal Year 2027 (July 1, 2026) to the agency’s Board of Directors. These rates and charges will help support the proposed $3.2 billion biennial budget, which reflects EBMUD’s commitment to keep essential water and wastewater services reliable and resilient. This budget includes a 10-year financial plan for a Capital Improvement Program that renews critical infrastructure, protects the environment, and delivers high-quality water at reasonable rates.
Proposed decreases in general in the monthly water service charge (based on meter size) and proposed increases in the volumetric unit rates (applicable to water usage) are based on an updated cost of service study completed in 2025. Bill impacts will vary based on water use, elevation and other factors. If approved, EBMUD water would cost about 2 cents per gallon.
Proposed rates
The proposed water system budget is supported by average rate increases of 6.5 percent in each FY26 and FY27. For FY26, changes in customer bills will vary based on usage and other factors, due to updates from the cost-of-service study. For wastewater, the proposed wastewater system budget is supported by average rate increases of 8.5 percent for each FY26 and FY27. For greater detail about rate changes and bill impacts please see ebmud.com/rates.
A typical residential customer using 125 gallons of water per day would see an increase of about $3.77 per month (12¢ per day) in the first year, and an additional increase of $4.30 per month (14¢ per day) in the second year. The same household, if a wastewater customer, would see an increase of $2.31 per month (8¢ per day) in the first year, and an additional $2.35 per month (8¢ per day) in the second year.
“EBMUD works every day on major upgrades and replacements of our critical infrastructure. This budget is a strategic step toward long-term financial resilience while we modernize these critical systems,” General Manager Chan said. “With many known and unknown challenges ahead, our focus on public health and environmental protection remains unwavering. These planned investments will help EBMUD address aging infrastructure and prepare for earthquakes, emerging contaminants, and the impact of climate change which is worsening droughts and wildfires in California.”
Water service budget highlights
- Investments of $1.2 billion in capital projects over the next two years, and $5.6 billion over the next 10 years. In the next decade, EBMUD plans to invest nearly $1.9 billion in water pipelines and complete of $713 million in upgrades to water treatment facilities.
- The multi-year Orinda Water Treatment Plant Disinfection and Chemical Systems Safety Improvements Project will add ultraviolet and chlorine disinfection to the plant that serves more than 800,000 customers daily.
- Install more than 50 miles of water pipelines with ongoing and new projects in Oakland, Orinda, Castro Valley, Richmond, Berkeley, Alameda, Lafayette, Walnut Creek, El Sobrante, San Pablo, and seven other jurisdictions including Contra Costa County, El Cerrito, Piedmont, Pleasant Hill, San Leandro, San Lorenzo and Hayward.
- Employs a prudent debt strategy by issuing new bonds for a portion of planned capital investments while partially paying down existing debt.
- Adds 11 positions for education, skilled trades, recreation area safety, customer affordability programs, paving and utility labor.
Wastewater service budget highlights
- Investments of $170.8 million in capital expenditures over the next two years, and $1.2 billion over the next 10 years to improve large wastewater collection pipes, pump stations, treatment facilities, electrical controls, and major projects related to nutrients and protecting the health of San Francisco Bay.
- This year, Emeryville Sewer Pipeline Rehabilitation and Pump Station H in Oakland; Constitution Way Pipeline Rehabilitation in Alameda and improvements at the Main Wastewater Treatment Plant within two years.
- Strategically incorporates the use of bonds along with cash to fund the capital plan while enabling the pay down of a portion of outstanding debt.
- Adds two additional positions for skilled trades and critical electrical projects.
Next steps
Learn more at ebmud.com/rates or join the EBMUD Water Wednesday webinar “Tapping into Tomorrow,” a deep dive into the proposed budget, on May 21, 2025; 6 p.m.
The EBMUD Board of Directors will hold a public hearing to consider adoption of the proposed budget and rates on June 10, 2025; 1:15 p.m.
Resources
Photos and video of Orinda Water Treatment Plant construction, pipeline installation, Main Wastewater Treatment Plant and graphics. Available for download until July 31, 2025.
View a map of active and planned construction projects at ebmud.com/construction.
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The East Bay Municipal Utility District has a proud history of providing high-quality drinking
water for 1.4 million customers in Alameda and Contra Costa counties. EBMUD’s wastewater
system serves 740,000 customers and helps protect the ecosystem of San Francisco Bay.
EBMUD is a not-for-profit public agency established in 1923.