water talks - mwd litigation update

Download Water Talks - MWD Litigation Update

Post on 07-Jul-2015



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Deputy General Manager Sandy Kerl provides an update on the MWD Litigation at the September Water Talks event, Water Rates: Building a Reliable Future


  • 1. Sandy Kerl, Deputy General Manager September 18, 2012 1

2. Supplies from MWD accounted for199195% of all water used in San DiegoLocal Supplies:County26,000 AF (5%) San Diegos then-$65 billion economyand quality of life for its 2.5 million MWD Supplies: 552,000 AFresidents were at significant risk (95%)during times of water shortage Our region had almost all of its eggsin one basket: MWD2 3. Business Communitys Response: Never Again!No More Water Shortages! 33 4. Water Authority filed lawsuit June 11, 2010challenging MWDs 2011 and 2012 rates MWD misallocates unrelated water supply costs ontoits transportation charge in violation of state law,California Constitution and industry standards Water Authority filed similar lawsuit June 8,2012 challenging MWDs 2013 and 2014 rates 4 5. < 20032003>MWD SystemCosts New Rate Structure Misallocates Water SupplyUniformCosts to Transportation Charge WaterWater Rate SupplyCostsWaterSystem PowerWater MWD Must SupplyAccessRate StewardshipDisaggregateRateRate RateIts CostsCharged for Transportation Water Supply Costs MWD System CostsCharged for Purchase of MWD Water 5 6. Water Supply Costs MWD System Costs WaterSystemPowerSupplyAccess Rate RateRateCharged for TransportationCharged for Purchase of MWD Water6 7. The amount of money at stake in the WaterAuthoritys rate lawsuit vs. MWD (over 45 years): $1.3 billion to$2.1 billion 2012 Impact: $40 million takenout of San Diegos economy7 8. Undercharge Overcharge 8 9. Both cases are assigned to San FranciscoSuperior Court Judge Richard Kramer After 8 months of delay caused by MWD,Judge Kramer ordered MWD in Sept. tobegin producing documents in the first case Expect a lower court decision in 2013, andappeals are expected9 10. If appropriate, ask organizations that you arepart of to adopt a position of support for theWater Authority in the rate litigation Stay informed by visiting the Water Authoritywebsite and Water Source newsletter Spread the word: Suggest other civic organizations receive apresentation and adopt resolution/letter of support Publish commentaries and letters to theeditor supporting the rate challenge10 11. Associated General Contractors of San Diego County Board of SupervisorsAmerica, San Diego Chapter City of San Diego BIOCOM San Diego Regional Chamber of City of Del MarCommerce City of Escondido San Diego Regional Economic City of Imperial BeachDevelopment Corporation City of Lemon Grove Downtown San Diego Partnership San Diego County Taxpayers City of National CityAssociation City of Oceanside League of California Cities, San Diego City of PowayChapter City of Solana Beach San Diego County ApartmentAssociation Carlsbad MWD Asian Business Association Fallbrook PUD Building Owners & Managers Helix Water DistrictAssociation Lakeside Water District Engineering and General ContractorsAssociation Olivenhain MWD Fallbrook Chamber of Commerce Otay Water District San Diego County Hispanic Chamber of Padre Dam MWDCommerce Rainbow MWD NAIOP Commercial Real EstateDevelopment Association Ramona MWD San Diego North Chamber of Commerce San Dieguito Water District Santee Chamber of Commerce Santa Fe Irrigation District South Bay Irrigation District Sweetwater Authority Vallecitos Water District Valley Center MWD Yuima MWD 11 12. 12