Proposed Rates Effective January 1, 2024

Proposed Pass-through Charges

Proposed San Diego County Water Authority (SDCWA) and Metropolitan Water District (MWD) Pass-through Charges

The Authority indirectly purchases wholesale water from MWD through SDCWA. Regardless of how much water is purchased from SDCWA, SDCWA imposes on the Authority: (1) an Infrastructure Access Charge (IAC); (2) a Customer Service Charge (CSC); (3) an Emergency Storage Charge (ESC); and (4) a Supply Reliability Charge (SRC and, together with the IAC, CSC, ESC, and SRC, the SDCWA Pass-Throughs). The IAC is a fixed charge that is determined based on meter size, and is imposed on the Authority as an additional source of revenue to SDCWA to provide better coverage for SDCWA’s projected fixed costs. The CSC is imposed on the Authority as an allocation of SDCWA’s customer service related costs. The ESC is imposed on the Authority as an allocation of SDCWA’s costs for its emergency and carryover water storage program to provide sufficient water to the region in the event of an emergency. The SRC is imposed on the Authority as an allocation of SDCWA’s cost to maintain reliable water supplies. These latter three charges are determined on the basis of a multi-year average of the amount of water purchased by the Authority from SDCWA.

MWD imposes on the Authority: (1) a Readiness-to-Serve charge (MWD-RTS) and (2) a Capacity Charge (MWD-CC and, together with the MWD-RTS, the MWD Pass-Throughs). The MWD-RTS is imposed on the Authority as an allocation of MWD’s cost to provide peak capacity within the MWD’s distribution system. The MWD-CC is imposed on the Authority as an allocation of MWD’s costs associated with standby and peak conveyance capacity and system emergency storage capacity. These MWD charges are determined on the basis of multi-year averages of the amount of water purchased by the Authority from SDCWA.

Effective January 1, 2024, the Authority proposes to pass-through the SDCWA IAC to customers based on meter size, as set forth in Table H. The remaining SDCWA Pass-Throughs, and the MWD Pass-Throughs, are proposed to be passed-through to customers effective January 1, 2024 per HCF of water used, in the amounts set forth in Table I. The Authority anticipates that MWD and SDCWA will increase the MWD Pass-Throughs and the SDCWA Pass-Throughs in the future, and the Authority is proposing to authorize automatic pass-throughs of any future increases to customers. If approved, the Governing Board may implement any increase to the MWD Pass-Throughs and SDCWA Pass-Throughs for the three-year period commencing January 1, 2025, through and including December 31, 2026, provided, however, that (1) any increase in the rates of the MWD Pass-Throughs or SDCWA Pass-Throughs described above shall not exceed 10 percent per year; (2) in no event shall the rates be increased by more than the cost of providing water service; and (3) the Authority shall provide all customers at least 30 days’ written notice prior to implementing any MWD or SDCWA Pass-Through adjustment. Tables H and I provide the proposed pass-through rates.