The San Diego County Water Authority presented information to the San Diego Regional Chamber of Commerce Board of Directors on the Water Authority's rate lawsuit against the Metropolitan Water District. Key points included: 1) The potential financial impact of MWD's overcharges to San Diego County is $1.3-$2.1 billion over 45 years, including $40 million taken out of the local economy in 2012 alone. 2) The Water Authority purchases about 30% of MWD's water and provides about 30% of MWD's revenues, making it the largest member agency. 3) MWD supplies historically accounted for 95% of water used in San Diego County, creating significant risk during shortages by relying on

1. San Diego Regional Chamber of Commerce
Board of Directors
February 23, 2012
San Diego County Water Authority

2.  The amount of money at stake in the Water
Authority’s rate lawsuit vs. MWD (over 45 years):
$1.3 billion to
$2.1 billion
2012 Impact: $40 million
taken out of San Diego’s economy
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3.  Water Authority is MWD’s largest
member agency, buying ~30% of 1991
MWD’s water and providing ~30% of Local Supplies:
26,000 AF
all of MWD’s revenues (5%)
 Supplies from MWD account for 95%
of all water used in San Diego County
 Water Authority buying twice the amount MWD Supplies:
of water than it had a Preferential Right to 552,000 AF
at MWD (95%)
 San Diego’s then-$65 billion economy
and quality of life for its 2.5 million
residents were at significant risk during
times of water shortage
 Our region had almost all of its “eggs” in
one “basket”: MWD
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4. Chamber’s Response:
“Never Again!”
“No More Water Shortages!”
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5. 1991 2011 2020
26 TAF 72 TAF 28 TAF
80 TAF 103 TAF
(5%) (12%) 80 TAF
(5%) (13%)
(13%) (10%) 44TAF
20 TAF (6%)
552 TAF 75 TAF (3%)
(95%) (12%) 56 TAF
190 TAF
(7%)
(24%)
27 TAF
Total = 578 TAF 285 TAF 231 TAF (4%)
(47%) 51 TAF (30%)
(8%)
48 TAF
(6%)
Total = 611 TAF Total = 779 TAF
Metropolitan Water District Recycled Water
Imperial Irrigation District Transfer Seawater Desalination
All American & Coachella Canal Lining Groundwater
Conservation (existing and additional) Local Surface Water 5

6. < 2003 2003>
MWD
System
Costs
New Rate Structure Misallocates Water Supply
Uniform Costs to Transportation Charge
Water Water
Rate Supply
Costs
Water System Power Water
MWD Must
Supply Access Rate Stewardship
Disaggregate
Rate Rate Rate
Its Costs
Charged for Transportation
Water Supply Costs
MWD System Costs
Charged for Purchase of MWD Water
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7. Water Supply Costs
MWD System Costs
Water System Power
Supply Access Rate
Rate Rate
Charged for Transportation
Charged for Purchase of MWD Water
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8. Undercharge Overcharge
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9.  Adopt resolution supporting Water Authority in
the rate litigation
 Spread the word:
 Suggest other civic organizations receive presentation
and adopt resolution of support
 Provide written and oral testimony at MWD 2013
and 2014 rate-setting hearings (March 12, 2012)
 Publish commentaries and letters to the editor
supporting Water Authority position
 Feature in publications
 Feature on web site and in social media activities
 Link to Water Authority web site
 http://www.sdcwa.org/mwdrate-challenge
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