Riverside Public Utilities (RPU) will delay implementing a water treatment surcharge by one year after receiving the first payment from settlements with PFAS manufacturers, officials announced at Tuesday's City Council meeting. The utility expects to receive approximately $39 million over eight years from the settlements to help offset the costs of treating per- and polyfluoroalkyl substances, known as "forever chemicals" because they don't break down in the environment, in the city's water supply.
The delay provides relief for ratepayers who would have faced rate increases to fund three new treatment plants needed to comply with federal drinking water standards taking effect in 2031. More than 60% of RPU's groundwater sourcescontain PFAS above the federal standards, requiring advanced treatment to ensure continued compliance.
The settlements stem from nationwide class-action litigation against manufacturers of PFAS — synthetic chemicals used since the 1940s in firefighting foam, non-stick coatings, and stain-resistant products. 3M agreed to pay up to $12.5 billion over 13 years to more than 11,000 water systems, while DuPont and related companies Chemours and Corteva settled for $1.185 billion. Neither company admitted liability in the settlements.
"The good news is we received our first PFAS settlement payment and the second one is anticipated any day now. Therefore, we will be delaying the PFAS surcharge by one year," said Robin Glenney, Assistant General Manager of Water for Riverside Public Utilities.
The settlement proceeds will fully fund the first treatment plant at Palmyrita, but ratepayers will face surcharges for the two additional facilities at Palm Meadows and John W. North.
The three treatment plants carry an estimated price tag of $97 million, with annual operations and maintenance costs projected at $19 million.
Using the settlement proceeds combined with bond financing reduces financing costs by more than $32 million, bringing them down to $58 million, according to Brian Seinturier, Assistant General Manager of Public Utilities Finance and Administration.
RPU currently operates 72 water wells, with 14 already receiving treatment for PFAS. The new facilities will provide treatment capacity for an additional 30 wells. The first treatment plant is scheduled to begin operations in July 2027, with subsequent facilities coming online in 2028 and 2029.
The surcharge structure would increase water rates by approximately 20% phasing in over seven years beginning in 2026.
RPU staff will return within one year for review of the water treatment surcharge for facilities not covered by settlement proceeds.
