A MEMBER AGENCY TURNS ON THE METROPOLITAN WATER DISTRICT
By Stephenie J. Frederick
Seven years after the Metropolitan Water District of Southern California (MWD) developed a new regional pricing system (which became effective in 2003), the San Diego County Water Authority (SDCWA) is challenging the rate structure and the allocation of costs applied to water the SCDWA imported through the MWD system.
The MWD passes on these major costs to the agencies that purchase its water:
- Cost of securing the water supplies (called the “water supply rate”)
- Cost of maintaining the system’s ability to convey and distribute water (“system access rate”)
- Cost of power to transport water (“system power rte”)
- Cost to treat the water.
- Cost of incentives for end-users to conserve and recycle water (this is called the “water stewardship fee”)
The rate structure is “unbundled,” which means that MWD tracks all of the costs separately, charging for services and water used. For example, since the SDCWA has it sown water-treatment facilities, MWD delivers mostly untreated water to SDCWA and does not apply treatment fees.
SDCWA began purchasing water annually from the Imperial Irrigation District (IID) rather than rely only on MWD supplies. This IID water costs more than MWD water. SDCWA has had to move the IID water through MWD’s facilities because there is no other way to transport the water.
MWD agreed to accommodate SDCWA’s request to move the water through its facilities – but has been charging for system maintenance, pumping, and conservation incentives – three of the five costs. SDCWA claims that MWD is also charging for the actual water it purchased from IID but disguising it as a maintenance cost. In other words, SDCWA claims that is is paying the same fees as other MWD users (less the treatment fees) – but for its own water that it bought from IID.
SDCWA’s claims that it should pay only for system maintenance and pumping . MWD asserts that any water moved through its system should have the water stewardship fee attached because conservation is so vital at a time of climate change and population growth. The author of this summary could not find an MWD statement about whether water-supply costs are hidden in the system-maintenance costs.
The arguments presented in the lawsuit and the final ruling will be of great interest to those of us watching water issues in the Southland.
Stephenie J. Frederick
Angeles Chapter Water Conservation Committee