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Posted on: March 31, 2021

SWA allocates $875k rebate from legal settlement to help offset costs for customers

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At its meeting on March 24, 2021, the Sweetwater Authority (Authority) Governing Board approved allocation of a nearly $875,000 rebate from San Diego County Water Authority (SDCWA) to the Authority’s Rate Stabilization Reserve. Created as part of its 2018-19 budget, the reserve helps manage the rising cost of imported water and smooths rate impacts on Authority customers.

The money from SDCWA comes as a portion of $44.4 million in rebate funds the regional wholesaler recently distributed to its 24 member agencies after receiving funds from the Metropolitan Water District of Southern California for legal damages and interest. 

The Authority’s portion is based on water purchases from SDCWA from 2011 through 2014. The funds being returned to the Authority were initially collected from customers and then used to pay for water purchases. By allocating these funds to the Rate Stabilization Reserve, the Authority is able to offset costs of water purchases in the future for customers. The majority of other San Diego County water agencies have indicated a similar use of the returned overcharges.

Click here for more information on the litigation that resulted in the rebate.


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