After a prolonged period of legal strife, the San Diego County Water Authority and the Metropolitan Water District of Southern California have called a truce, ending a 15-year dispute over water rates and pricing. This settlement is a significant step towards cooperation in managing Southern California's water resources, which impact nearly 19 million residents.
The agreement dictates that San Diego will pay a fixed rate to Metropolitan for delivery of its conserved Colorado River water, a departure from the variable rates that fueled much of the contention. This deal, effective starting at $671 per acre-foot in 2026, is aimed at providing a buffer against future legal skirmishes and allowing for financial predictability. In an announcement reported by the City of San Diego, this resolution is framed as a win for the ratepayers and the region.
Key players in reaching this historic compromise include Water Authority Chair Nick Serrano and Metropolitan board Chair Adán Ortega, Jr., who expressed gratitude for the collaboration that culminated in this outcome. Serrano made ending this litigation a focus of his term since October 2024. Further, the agreement opens new revenue paths for San Diego, providing opportunities to offer water to other Metropolitan member agencies or sell the conserved water back to Metropolitan itself.
General Managers from both agencies, Dan Denham of the Water Authority and Deven Upadhyay of Metropolitan, are optimistic about the future, signaling a turn from past tensions to a joint effort in addressing water reliability challenges. They view today as the end of litigation and as the start of a proactive, united front on water management in Southern California.
