Water rates are the primary source of funding for the Nevada Irrigation District (NID) to operate and maintain its water system. These rates allow the District to continue delivering reliable water service to farms, fields, and homes across Nevada, Placer, and Yuba counties.

To continue delivering these essential services, it's critical that our rate structure keeps pace with the real costs of providing water. This includes operational expenses such as labor, materials, energy, maintenance, and regulatory compliance.

 

DOCUMENTS:

Cost of Service Study (March 25, 2026)  

Frequently Asked Questions (FAQ)

 

How much will my bill increase?

For all customers, your bill increase will depend on how much water you use or purchase.

In 2027:

A treated water customer with a 5/8-inch meter using 5 HCF (500 cubic feet) of water per month will see an increase of approximately $3.90 per month.

An irrigation customer receiving one miner's inch of summer water will see an increase of approximately $13.61 per month during the six-month irrigation billing season.

Updates:

(Aug. 6, 2026)

Nevada Irrigation District Board adopts reduced water rate increase for 2027

Grass Valley, CA – Aug. 6, 2026 — The Nevada Irrigation District (NID) Board of Directors today approved a 9 percent increase in treated and irrigation water rates only for Fiscal Year 2027. The adopted rates are lower than the maximum rates authorized through the District's Proposition 218 rate process.

The action follows two public workshops held in July, where the Board reviewed financial information, received public input, and evaluated options for reducing the 2027 rate adjustment while maintaining the long-term reliability of the District's water system.

The adopted rates reflect the Board's commitment to balancing affordability for customers with continued investment in the infrastructure, facilities, and watersheds that support reliable water service.

"Our responsibility is to provide safe, reliable water today while making the investments necessary to ensure that same reliability for future generations," said NID Assistant General Manager Greg Jones. "The Board carefully considered customer concerns and worked to reduce the 2027 increase while maintaining the financial stability of the District."

The reduced rate increase is possible in part because of stronger-than-anticipated hydropower revenues and lower-than-expected hydropower expenditures in 2025. Those factors resulted in higher available balances in NID's Hydroelectric Fund. Following adoption of the 2027 budget, approximately $1.28 million will be transferred from the Hydroelectric Fund to the Water Fund to help offset water system costs and reduce the rate increase for customers.

The Board's action is consistent with the commitments it made during the Proposition 218 process. Before setting annual rates, the Board agreed it would:

• Hold public workshops before considering annual rate adjustments.
• Approve rates each year during a public meeting.
• Consider grants, external revenue sources, reserve balances, and operational efficiencies to reduce customer costs whenever possible.
• Evaluate treated and irrigation water rates independently.

 

The Board held public workshops on July 22 and July 28 before taking final action on the 2027 rates.

Customer Impact

For 2027:

• A treated water customer with a 5/8-inch meter using 5 HCF (500 cubic feet) of water per month will see an increase of approximately $3.90 per month.
• An irrigation customer receiving one miner's inch of summer water will see an increase of approximately $13.61 per month during the six-month irrigation billing season.

The adopted rates are lower than the maximum rates approved during the Proposition 218 public hearing in May 2026.

Revenue generated by water rates supports the operation, maintenance, repair, and improvement of NID's treated and irrigation water systems, including reservoirs, canals, pipelines, treatment facilities, and other infrastructure that provides reliable water service to customers throughout western Nevada and Placer counties.

The District will continue pursuing grants, operational efficiencies, and other external funding opportunities to help reduce future costs while maintaining the reliability of its water system.

(May 27, 2026)

On May 27, following a public hearing on proposed water rate adjustments, the Board of Directors adopted a new water service rate schedule establishing a maximum allowable annual increase of 12.5 percent. The action does not set actual rate increases, which will be considered in July.

The Board also adopted several “guardrails” to guide future rate discussions and strengthen public oversight.

Under the new process, rate increases will not occur automatically. Any future adjustment must be approved annually by the Board during a public meeting before adoption of the District budget. The Board also directed staff to hold at least two public workshops before future rate discussions.

In addition, the Board will review whether grants, outside funding, or reserve funds could help offset future increases. Irrigation and treated water rates may also be reviewed separately if conditions allow. Staff was further directed to pursue grants, partnerships, and cost-saving opportunities to reduce pressure on rates.

During the public hearing, an official protest count was conducted. Under Proposition 218, the process would have stopped if a majority-plus-one threshold — 12,537 protests — had been reached.

NID received 3,105 protest votes. The count was unverified, meaning all submitted protests were included without checking addresses, account numbers, or customer information. For comparison, NID received 4,684 protests during the District’s 2019 rate adjustment process.

Water rates are NID’s primary source of revenue and fund operations, maintenance, debt service, and infrastructure improvements. NID estimates capital improvement costs will total about $140 million over the next five years and $235 million over the next 10 years. Operating costs are also projected to increase about 4 percent annually.

Why? The Need for a Rate Adjustment

The proposed water rate increase is to fund crucial construction projects to address failing infrastructure and compliance with regulatory requirements. The primary drivers of the proposed rate increase is the Scotts Flat Spillway Replacement Project, estimated to cost $55 million; upgrades to NID’s aging treatment plants to process safe drinking water; and the South Yuba Canal, which was recently acquired from PG&E, and escalations in operating costs due to inflation, material costs, and insurance.

• NID South Yuba Canal
• NID Scotts Flat Spillway Project

What happens if the infrastructure is not maintained?

The District requires ongoing funding to maintain and repair its aging infrastructure. Without it, critical projects such as the Scotts Flat Spillway Replacement and major canal repairs would likely be delayed or reduced in scope, increasing the risk of system failures.

This can lead to more frequent emergency repairs and costly breakdowns. It also increases the risk of noncompliance with state and federal regulations, which could result in fines and other legal consequences. For customers, this means a higher likelihood of service disruptions and less reliable water delivery.

A fair and transparent process

The proposed rate changes are guided by the NID Water Rate Study, a detailed, data-driven analysis that ensures:

• Fairness and equity across customer classes
• Revenue sufficiency to fund essential services
• Maintenance of adequate financial reserves for emergencies and long-term sustainability

 

The rate-setting process will follow all legal requirements under Proposition 218, including:

• Notification: A Proposition 218 Notice has been mailed to all water customers and account holders.
• Public Participation: A public hearing has been scheduled on May 27, 2026, when customers may provide input. Info: 9:00 a.m. May 27, 2026 at 1036 West Main Street, Grass Valley, CA 95945
• Transparent Review: The Board will review and discuss the rate adjustments during regular session meetings before any final vote.

NID is committed to transparency, accountability, and maintaining a water system that supports the health, safety, and prosperity of ​its served communities.