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San Diego County Water Authority-Building at night-MWD

Water Authority Prevails in Rate Litigation

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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.

FPUD Adopts PSAWR Guidelines

/in , , /by /Fallbrook Village News by Joe Naiman Mentioned: San Diego County Water Authority

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.

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Ventura Water’s $104M Debt Refinancing to Minimize Rate Hikes for Customers

/in , /by /VC Starby Mike Harris

The city of Ventura has refinanced most of Ventura Water’s $104 million debt, resulting in nearly $16 million in savings that are expected to lower planned rate hikes for customers, city officials said.

Refinanced was $97.4 million of the debt total, said Michael Coon, the city’s finance and technology director.

The rate on the refinanced debt was lowered from 4.8% to 2.47%, resulting in the $15.95 million savings, he said.

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Opinion: After COVID-19 Ends, Will Californians Go Thirsty?

/in , /by /Los Angeles Timesby The Times Editorial Board

In the midst of drought yet again, and two decades into the 21st century, California continues to operate with a water infrastructure engineered and constructed for 20th century climate conditions and populations. That’s true not only of the state’s physical network of dams and aqueducts, but of its legal and financial infrastructure as well — the pricing rules that allocate the state’s precious liquid resources among its 40 million thirsty people. The coronavirus emergency has highlighted some of the most serious stresses in the system.

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FPUD Outlines Rate Setting Process

/in , , /by /Village Newsby Joe Naiman Mentioned: San Diego County Water Authority

A presentation at the Oct. 26 Fallbrook Public Utility District board meeting outlined the process of setting calendar year 2021 rates. The presentation was a nonvoting item, but the FPUD board members expressed no objection to the schedule.

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CWA Provides PSAWR Eligibility Guidelines

/in , , /by /Fallbrook Village Newsby Joe Naiman Mentioned: San Diego County Water Authority

The San Diego County Water Authority approved a permanent Special Agricultural Water Rate program late last year but did not include any criteria. On Sept. 24, the SDCWA approved an ordinance adopting the program and setting eligibility criteria.

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The Vallecitos Water District Twin Oaks Reservoir dual solar panel array is expected to be completed in November 2020. Photo: Vallecitos Water District Solar Project

Solar Project Saves Energy, Costs for Vallecitos Water District

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The Vallecitos Water District is pursuing greater use of renewable resources, increasing capacity to the electrical grid, and reducing long term operational costs with an innovative solar power project.

The west solar array is installed on top of the Vallecitos Water District’s 33-million gallon reservoir with 2,300 solar modules and eight 80 kw inverters. The east array is located on top of the 40-million gallon reservoir with 2,900 modules with ten 80 kw inverters. Photo: Vallecitos Water District

In 2017, the Vallecitos Water District Board of Directors agreed to pursue development of districtwide renewable power sources using existing open space to benefit the District and its ratepayers.  The District worked with solar consultants Terra Verde Renewable Partners to evaluate and study the feasibility of three solar port locations. Two projects are now moving forward; two arrays at the pair of Vallecitos owned reservoirs in Twin Oaks, and an array at the (sewer) Lift Station #1, located on San Marcos Boulevard.

The projects are structured under a Power Purchase Agreement. A solar provider designs, builds, and maintains systems for 25 years. In turn, the District receives a reduced electricity rate from SDG&E over the 25-year term at the District’s 13 highest use meters. The District will become owners of the solar system after the 25-year maintenance term expires. No capital investment is required from the District.

“The project is a great benefit to Vallecitos customers,” said Ryan Morgan, Capital Facilities Senior Engineer. “Through our export of power into the electrical grid, we receive bill credits on these power exchanges. The District benefits directly through reduced power costs, and that cost savings is passed down to the customer ultimately in reduced water and sewer rates.”

Multiple stakeholders working together

Vallecitos Water District provides the project sites, working with SDG&E, the solar provider team, the District’s contractors, and the solar maintenance operator. The District’s water professionals work with solar power experts to guide the project through planning, design, and construction as a team.

Over the 25-year term, the District will benefit from a reduced electrical rate of 7.79 cents per kilowatt-hour (kWh) at its 13 highest use meters. It will also receive a rebate or credit on its export of power to the electrical grid. Savings to the District over 25 years are estimated at $8.3 million, which ultimately results in reduced water and sewer rates for customers. District staff locked in the maximum federal rebate by launching the project in 2019 and meeting a narrow window for grant funding.

Solar panels installed on top of two reservoirs

The Twin Oaks Reservoir dual solar panel array sites prior to installation. Photo: Vallecitos Water District solar project

The Twin Oaks Reservoir dual solar panel array sites prior to installation. Photo: Vallecitos Water District

The west solar array is installed on top of the District’s 33-million gallon reservoir with 2,300 solar modules and eight 80 kW inverters. The east array is located on top of the 40-million gallon reservoir with 2,900 modules with ten 80 kW inverters. The total production is roughly 3.6 MWh annually, enough to power 340 homes.

Local power conservation remains vital

The Twin Oaks Reservoir dual solar array total production is roughly 3.6 mWh annually, enough to power 340 homes. Photo: Vallecitos Water District

The Twin Oaks Reservoir dual solar array total production is roughly 3.6 mWh annually, enough to power 340 homes. Photo: Vallecitos Water District

While the solar power project cannot prevent the potential for power outages due to rolling blackouts, the project helps to add capacity to the power grid when it is needed.

“The District wants to publicly thank Terre Verde Renewable Partners, Holt Renewables, and Kenyon Energy for their valuable roles in the success of this project,” said Morgan.  “We also want to acknowledge the above and beyond effort of the District’s inspections team.”

The Twin Oaks Reservoir dual array is expected to be completed in November 2020. The Lift Station #1 site is expected to be completed in February of 2021.

Water Authority Sets Agricultural Water Discount in Exchange For Reliability

/in , /by /Times of San Diegoby City News Service Quoted: San Diego County Water Authority

The San Diego County Water Authority’s Board of Directors approved a permanent special agricultural water rate structure Sept. 24 that offers lower water rates to farmers in exchange for lower water supply reliability.

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Del Mar to Develop New Water Rate Structure

/in , , /by /Del Mar Timesby Luke Harold

Del Mar will begin the process of developing a new rate structure for its Clean Water Program.

The process of implementing a rate increase is expected to unfold over the next year, and will include a vote by Del Mar property owners.

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Water Agencies Plan to Abandon Costs, Reduce Supply Reliability

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Analysis released today shows that proposals by the Fallbrook and Rainbow water districts to leave the San Diego County Water Authority and annex into the Eastern Municipal Water District in Riverside County would increase costs for water ratepayers in San Diego County, reduce the county’s voting power, and decrease water supply reliability for farms and residents.

Numerous financial, environmental and legal issues that affect property owners and water users across San Diego County are analyzed in the Water Authority’s formal response to the reorganization proposals filed today with the San Diego County Local Agency Formation Commission, known as LAFCO.

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