Riverside Public Utilities workers Cory Schleiden, left, and Zach Neel work atop a 45-foot pole to replace transformer during voltage conversion project at a home in Riverside on Friday, Aug. 18, 2017.(Photo by Watchara Phomicinda, The Press-Enterprise/SCNG)

Riverside Public Utilities workers Cory Schleiden, left, and Zach Neel hoist a 675 pound transformer replacement atop a 45-foot pole during voltage conversion project at a home in Riverside on Friday, Aug. 18, 2017.(Photo by Watchara Phomicinda, The Press-Enterprise/SCNG)

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Riverside Public Utilities workers replace a transformer and a crossarm for voltage conversion project at a home in Riverside on Friday, Aug. 18, 2017.(Photo by Watchara Phomicinda, The Press-Enterprise/SCNG)

Riverside Public Utilities workers climbed a 45-foot pole to replace a transformer and a crossarm for voltage conversion project at a home in Riverside on Friday, Aug. 18, 2017.(Photo by Watchara Phomicinda, The Press-Enterprise/SCNG)

Riverside Public Utilities journeyman Darren Hefner, left, and Ryan Heche hoist a 675 pound transformer replacement atop a 45-foot pole during voltage conversion project at a home in Riverside on Friday, Aug. 18, 2017.(Photo by Watchara Phomicinda, The Press-Enterprise/SCNG)



Riverside Public Utilities workers climbed a 45-foot pole to replace a transformer and a crossarm for voltage conversion project at a home in Riverside on Friday, Aug. 18, 2017.(Photo by Watchara Phomicinda, The Press-Enterprise/SCNG)

Riverside Public Utilities workers Cory Schleiden, left, and Zach Neel climbed a 45-foot pole to replace a transformer and a crossarm for voltage conversion project at a home in Riverside on Friday, Aug. 18, 2017.(Photo by Watchara Phomicinda, The Press-Enterprise/SCNG)

Riverside Public Utilities workers Cory Schleiden, left, and Zach Neel hoist a 675 pound transformer replacement atop a 45-foot pole during voltage conversion project at a home in Riverside on Friday, Aug. 18, 2017.(Photo by Watchara Phomicinda, The Press-Enterprise/SCNG)

Riverside Public Utilities officials are preparing to make their pitch to customers that they need to raise rates to keep the water and electric systems functioning reliably.

At community meetings around the city this fall, officials will roll out plans for annual increases for the next 10 years. On average, electric rates would rise 4.8 percent a year and water rates would go up 8.55 percent a year through 2022, and would keep pace with inflation for the rest of the 10-year period.

In the first year, the typical residential customer would pay a combined $9.74 more per month for their water and electric service, and bills would rise by a similar amount each of the next four years, according to information from the utility.

The increases are needed for several reasons, Riverside Public Utilities General Manager Girish Balachandran said.

Rates haven’t gone up since 2010 for water and 2011 for electric, and the water utility lost $33 million in revenue over four years of drought due to state-mandated conservation, he said.

Also, the current schedule of repair and replacement of water pipes and pump stations and electric poles, wires and substations isn’t keeping up with the system’s deterioration, which could lead to water main breaks and power outages, Balachandran said.

“If we do not fix our infrastructure problems it will be too late, and you just have to look 60 miles west … to see how lack of spending on infrastructure affects people’s day-to-day lives,” he said, referring to reports of flooding, sinkholes and underground explosions in and around Los Angeles.

Higher customer rates would help pay for about $506 million in improvements, including building, replacing or upgrading 5,900 electric poles, 77 miles of underground cables, seven transformers and one electric substation, as well as 80 miles of water lines, three pump stations and a treatment plant.

To soften the blow to ratepayers, the utility has been using reserves instead of borrowing to pay for system maintenance for about four years, and officials have sought new revenue sources such as the sale of unused water to other utilities, Balachandran said.

Part of the reason it’s hard to keep up with infrastructure needs is that customers are now charged based on how much water or electricity they use, but most of the utility’s expenses aren’t for the product it supplies – the water or power. They’re fixed costs for things like installation of pipes, construction of treatment plants and worker salaries.

Balachandran said over the long term, the utility will add more fixed service charges to better address the need to maintain the water system and electric grid.

Some council members said they’re anticipating tough questions from residents, especially after recent news that a number of utility dispatchers earned six figures of overtime in 2015 and 2016 and management appeared slow to address the issue.

“It’s going to be a hard sell. The community isn’t going to want to pay more,” said Councilman Mike Gardner.

He agrees the utility needs more revenue, he said, but he’s not convinced officials can justify raising rates quite as much and as fast as Balachandran is recommending.

“The discussion has to focus on where do the dollars go, and a majority of it is replacement of the infrastructure – and I think we have to show that,” Gardner said.

Councilman Mike Soubirous said he’ll only approve higher rates if part of the plan is to smooth out the impact on customers by doing smaller, regular increases instead of delaying for years and then asking for a big hike.

He added that the current proposal, which connects increases to the consumer price index after five years, would satisfy his demand.

Now utility officials hope to sell the plan to the community. They’ll be discussing it at meetings in October and November, with the City Council expected to vote on the changes in February.

About Riverside utility rates

Riverside Public Utilities plans to ask the City Council to approve increases to water and electric rates.

Why: Rates haven’t gone up in six or seven years, and the utility has a backlog of hundreds of millions of dollars in repairs and replacement to maintain the water and electric systems.

How much: Over five years, officials plan to raise electric rates an average 4.8 percent a year and water rates an average of 8.55 percent annually. The combined cost for a typical residential customer would be about $9.74 more per month.

When: Utility officials will hold community meetings on the proposal in October and November. The City Council is expected to vote on the plan in February, and new rates would kick in around April.

Information: Visit www.riversideca.gov/utilities/ for information on long-term plans, known as Utility 2.0. A report on the rate proposal is on the Aug. 28 utilities board agenda, which is at www.riversideca.gov/utilities, clicking on “About RPE,” clicking on “Board of Public Utilities,” clicking on “Board Meetings & Agendas” and clicking on “View Meetings.” Then find Aug. 28, click on “Meeting Details” and find the “Rate Plan Proposal.” Then click on “17-2553” and click on “Report.”