In a move indicative of a shift towards regional unity, the Metropolitan Water District of Southern California and the San Diego County Water Authority have arrived at a settlement terminating a 15-year feud over water rates and terms. As reported by the San Diego County Water Authority, this settlement dismisses all pending appeals. It upholds past court decisions, setting a foundation for collaboration that could impact the almost 19 million residents across Southern California.
With both agencies patting their backs in a joint news conference, the conclusion of this battle frees up resources to focus on water supply efficiency and reliability. Adán Ortega, Jr., the board chair of Metropolitan, mentioned in the conference that the legal dispute was once at the core of the agencies' relationship, but has now been replaced with cooperation. Hailing from yesterday's announcement and giving glimpses into forthcoming fiscal stability, fostered by the settlement, the agreement even opens doors for San Diego to supply water to other agencies within the Metropolitan's umbrella.
Confrontations over pricing began in 2010 when the Water Authority challenged the rates set by Metropolitan for a water exchange arrangement. This accord dates back to deals for conserved Colorado River water, acquired by the Water Authority through contracts and canals' conservation work, totaling up to 277,700 acre-feet annually. The previous cost structure, which had been a major source of disagreement, will now be replaced with an agreed-upon fixed price, safeguarding budgets from the uncertainties of fluctuating rates. Starting at $671 per acre-foot in 2026, this price will escalate annually by a specified consumer price index.
