Tag Archive for: San Diego County Water Authority

San Diego County Water Authority-Building at night-MWD

Water Authority Prevails in Rate Litigation

The San Francisco Superior Court has ruled the San Diego County Water Authority is the prevailing party in the agency’s first two lawsuits to be heard challenging rates and charges set by the Los Angeles-based Metropolitan Water District of Southern California. The order entitles the Water Authority to recover its attorneys’ fees and costs in those cases, in addition to a $44 million damage and interest award made earlier.

“San Diego prevailed, and the judgment not only benefits its own ratepayers but all of the nearly 19 million people in Metropolitan’s service area because enforcing cost-of-service principles serves the interests of all ratepayers,” said Superior Court Judge Anne-Christine Massullo in her Jan. 13 order, which can be appealed. The exact amount of recoverable fees will be decided later.

In light of the order, Water Authority Board Chair Gary Croucher reiterated the Water Authority Board’s longstanding desire to avoid litigation and find common ground with other MWD member agencies. “This ruling only enhances our determination to find an equitable resolution that will not only conclude the few issues that remain pending in court, but also help avoid future litigation as new rates and charges are being considered for 2023 and subsequent years,” he said.

Protecting water ratepayers

The Water Authority filed lawsuits between 2010 and 2018 challenging water rates and charges as they were set and imposed by MWD on San Diego County agencies and their ratepayers. After a favorable court ruling invalidating MWD’s Water Stewardship Rate on the Exchange Agreement, the Water Authority worked with MWD to try to resolve the remaining issues. The MWD Board promised to fund almost $500 million in local water supply projects in San Diego County and the Water Authority agreed to dismiss claims against MWD’s Water Stewardship Rate on supply, which is used to fund local projects under the MWD program.

“It is deeply gratifying that the court not only validated our claims but acknowledged the importance of protecting ratepayers by water agencies following the law,” Croucher said. “This week’s order makes it clear once and for all that our desire to protect San Diego ratepayers was never intended to harm MWD, its other member agencies or the ratepayers they serve. Rather, the litigation was necessary to address serious flaws in MWD’s rates that will, as the court said, ultimately benefit not only San Diego County ratepayers, but all Southern Californians.”

Rate litigation

The Water Authority’s first two rate cases – covering 2011 to 2014 rates – resulted in the court ordering an increase in the Water Authority’s preferential right to MWD water by as much as 100,000 acre-feet a year, equivalent to about twice the annual production of the $1 billion Carlsbad Desalination Project. MWD has already complied with this ruling and adjusted its records accordingly.

The court also determined that MWD must pay the Water Authority damages for illegal charges imposed on delivery of the Water Authority’s water under the Exchange Agreement. A Superior Court judge in August 2020 awarded the Water Authority $44,373,872.29 covering rates paid by San Diego County ratepayers during 2011-2014.

Water Stewardship Rate charges

San Diego County ratepayers have also avoided paying more than $45 million from 2018-2020 after MWD suspended its invalid Water Stewardship Rate charges on the Exchange Agreement. The improper charges would have cost local residents more than $500 million over the term of the Exchange Agreement. Currently, MWD owns the only pipeline that can deliver the Water Authority’s independent supply of Colorado River water to San Diego County and it sets the unregulated water rates which govern and control the delivery of water to San Diego County.

In addition, the court ruled that MWD had illegally barred the Water Authority from receiving money from MWD’s local water supply program, even though the Water Authority was still being forced to pay for it. MWD lifted the ban in response to the court’s order, and ultimately promised the nearly $500 million for water supply projects in San Diego County including the City of San Diego’s Pure Water North City Project Phase 1, East County Advanced Water Purification Project, Escondido Membrane Filtration Reverse Osmosis Facility and Fallbrook Groundwater Desalter Project.

Carlsbad Committee Shakeup Bumps Schumacher from SANDAG, CEA

During a Jan. 12 Carlsbad City Council meeting, the city reorganized members for its regional and municipal committees, including prominent board seats on the San Diego Association of Governments and Clean Energy Alliance.

Mayor Matt Hall will return to the SANDAG board of directors, while Councilwoman Priya Bhat-Patel will join the Clean Energy Alliance board while remaining with North County Transit District.

Olivenhain Municipal Water District Logo

Olivenhain Municipal Water District General Manager Kimberly Thorner Joins County Water Authority Board

Encinitas, Calif. — Olivenhain Municipal Water District General Manager Kimberly Thorner was seated this afternoon at her first board meeting as OMWD’s representative on the San Diego County Water Authority board of directors. OMWD’s board unanimously appointed Ms. Thorner to the position at its November 18, 2020 meeting and she was sworn in on January 6, 2021.

“Ms. Thorner will continue to ensure that the interests of ratepayers in OMWD’s 48-square mile service area are heard at the regional level,” said OMWD Board President Larry Watt.

Gary Croucher-Board Chair-San Diego County Water Authority-Primary

Building a Collaborative Vision for San Diego County

We welcome the new year with heavy hearts about the recent events in our nation’s Capitol and a renewed commitment to civility and respect at every level of government.

At the same time, we are maintaining our concentration on our priorities for the year, which are numerous and significant. I’m focused on advancing San Diego County’s interests as we continue to fulfill our mission of making sure that our region has safe and reliable water supplies at an affordable price, which is critical to maintaining our economic competitiveness and sustaining our wonderful quality of life.

Here’s some good news about how the Water Authority is putting San Diego County first in 2021:

  • As part of our commitment to meeting some of the strictest environmental regulations in the world, the Water Authority and Poseidon Water have launched a state-of-the-art project evaluating intake screen technologies at the Claude “Bud” Lewis Desalination Plant, which has served more than 65 billion gallons of locally produced water over the past five years. Crews are testing both active screen and passive screen technologies in Agua Hedionda Lagoon to complete the full-scale project by the end of 2023.
  • We are updating our Urban Water Management Plan, which is a critical part of meeting the long-range water needs of the San Diego region for both normal years and dry years. This planning document is increasingly important given the increasingly unpredictable impact of climate change. The planning process is, of course, a collaborative effort with our 24 member agencies as we account for their local supplies and demand projections.
  • Our low-cost supplies of conserved water from the Imperial Valley are the foundation of our diversified supply portfolio. With Board direction, staff has launched the next phase of a study to explore a new system to deliver those supplies because initial studies show it could be most cost-effective than the current system and mutually beneficial for our partners in the valley. The study will only advance if it benefits the region by providing cost savings for ratepayers.
  • As the regional economy recovers, we are working hard to protect ratepayers by maintaining a focused and strategic budget. It’s a tough balance, but we are working hard to find the right combination of near-term and long-term funding priorities in these challenging times.
While I’m glad to put the old year behind us and welcome 2021, I’m certain there will be many challenges and opportunities ahead. I’m committed to keeping you informed along the way, and to working with our Board, member agencies, stakeholders, regional leaders and ratepayers to create innovative solutions. In my 20-plus years on the Water Authority Board, we’ve never shied away from big and bold ideas – and 2021 will be no exception.

Detachment Committee Introduces Consultant

San Diego’s Local Agency Formation Commission has an Advisory Committee on the Fallbrook/Rainbow Detachment which met Dec. 7, and the focus of that meeting was to introduce consultant Michael Hanemann and provide feedback on his proposed approach.

Vanderlaan Named LAFCO Chair, Reappointed to New Term

Bonsall resident Andy Vanderlaan will chair the 2021 meetings of San Diego County’s Local Agency Formation Commission, and he was also reappointed for another four-year term on the LAFCO board.

One 8-0 LAFCO vote Dec. 7 reappointed Vanderlaan as LAFCO’s public member. A separate 8-0 vote elected Vanderlaan as the LAFCO board chair for 2021 while electing County Supervisor Jim Desmond as the vice-chair for the 2021 meetings.

Lake Hodges Water Levels Dry Up Prospects for Grebes

For years, pairs of grebes would zoom across the water at Lake Hodges in a dazzling mating dance, and then build their nests on mats of dried brush suspended above the waterline.

Vanderlaan Named LAFCO Chair, Reappointed to New Term

Bonsall resident Andy Vanderlaan will chair the 2021 meetings of San Diego County’s Local Agency Formation Commission, and he was also reappointed for another four-year term on the LAFCO board.

One 8-0 LAFCO vote Dec. 7 reappointed Vanderlaan as LAFCO’s public member. A separate 8-0 vote elected Vanderlaan as the LAFCO board chair for 2021 while electing County Supervisor Jim Desmond as the vice-chair for the 2021 meetings.

The public member’s term actually expires in April 2021. LAFCO had the option of reappointing Vanderlaan or seeking additional applicants. The reappointment of Vanderlaan was contingent upon his willingness to serve a seventh term. “I’m inclined to do that,” he said.

FPUD Adopts PSAWR Guidelines

Earlier this year, the San Diego County Water Authority approved an ordinance adopting a Permanent Special Agricultural Water Rate and setting the eligibility criteria. On Dec. 7, the Fallbrook Public Utility District board voted 5-0 to update FPUD’s Administrative Code to incorporate the PSAWR.

“It will become a permanent SAWR program with eligibility changes,” Ken Endter, board president of FPUD, said.

Fallbrook Public Utility District Elects First Female President

The Fallbrook Public Utility District Board of Directors unanimously elected Jennifer DeMeo to serve as president, making her the first woman in the district’s history to lead the board. DeMeo was officially seated at the Dec. 7 meeting.