Water Rate Litigation Update

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Presentation to San Diego Regional Chamber of Commerce Board of Directors, Water Rate Litigation Update, February 23, 2012

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Water Rate Litigation Update

  1. 1. San Diego Regional Chamber of Commerce Board of Directors February 23, 2012 San Diego County Water Authority
  2. 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 2
  3. 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 3
  4. 4. Chamber’s Response:“Never Again!”“No More Water Shortages!” 4 4
  5. 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 TAFTotal = 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. 6. < 2003 2003> MWD System Costs New Rate Structure Misallocates Water SupplyUniform 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 6
  7. 7. Water Supply Costs MWD System Costs Water System PowerSupply Access Rate Rate Rate Charged for Transportation Charged for Purchase of MWD Water 7
  8. 8. Undercharge Overcharge 8
  9. 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 9

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