As part of our effort to maintain a safe and clean water supply, Riverside Highland Water Company Board of Directors voted unanimously at the August 2008 meeting to increase the water rates by 8 %. This rate increase will be applied to all categories except the State Regulatory Fee. The State Regulatory Fee is based on the previous years audited costs and should be adjusted annually. These new rates will be reflected on the October 2008 water bill.

As part of our effort to maintain a safe and clean water supply, Riverside Highland Water Company Board of Directors voted unanimously at the August 2008 meeting to increase the water rates by 8 %. This rate increase will be applied to all categories except the State Regulatory Fee. The State Regulatory Fee is based on the previous years audited costs and should be adjusted annually. These new rates will be reflected on the October 2008 water bill.

This increase is the first since the Board voted to increase the rates in December 1992, a span of 16 years. The Company has been able to maintain the same low rates for this time period by reducing our costs when possible, such as implementing the Capital Improvement Plan. The improved efficiency due to the Capital Improvement Plan has not only reduced our pumping costs, but has also helped reduce labor costs. Other costs saving measures include a Southern California Edison program called “Time of Use”. During the summer months, we turn off our pumps in the afternoon to help conserve energy, thus reducing our energy costs.

The Water Meter Replacement Program we implemented in 2007, by replacing the current meters with automated meters, has already helped to reduce our labor costs and will continue to do so as we replace the remainder of the meters.

While these, along with other areas of costs reduction, have helped Riverside Highland Water Company to maintain rates longer than other water agencies, our costs have continued to increase. We have been informed that we can expect between a six to ten percent cost increase in energy from Southern California Edison in 2009. The cost of our brass material used for water lines will increase by 30%. Construction costs, fuel, and increased regulatory compliance have all added to the need to increase our revenue at this time.