Weekend Open Thread: Prop 218 and Tiered Water Rates

.

.

.

San Juan Capistrano‘s tiered water rates were declared unconstitutional because SJC had a doofus city council, not because tiered water rates are a problem per se.

Poseidon adventure

Recently the California appellate court held that San Juan Capistrano’s tiered water rates violated Proposition 218‘s provisions relating to rules for “Property related fees.”  (Article XIII D, sec 6(b) ), setting off widespread concern that a key conservation tool was in jeopardy.

Not Really.

This past Friday morning MWDOC’s monthly Water Advisory Committee (WACO) was devoted to the lawsuit and its implications for Water Districts.

The summary:

  1. Tiered rates are fine.
  2. Rates need to be tied to an identified cost structure
  3. The cost basis for the rates needs to be documented,
  4.  Water Districts can still impose penalties. But such penatlies must be handled analogously to “laws” such as “jay walking,” not built into the rate structure
  5.  Water districts can still impose mandatory restrictions.

That third item is what caught out the San Juan Capistrano city council: the judge asked for the documentation, the city didn’t have it, case closed.

Water districts still have wide latitude to set rates and pursue conservation goals — but the costs driving those rates must be visible and documented.

So what does this have to do with the Poseidon Adventure, the mooted Huntington Beach desalination project?

Poseidon has another desalination plant coming on line in Carlsbad at the end of this year. The San Diego Water District will have to reset its rates to reflect the enormous costs of building and running the plant. Thanks to Prop 218 and the successful lawsuit from San Juan, San Diego will have to be quite forthcoming about just how expensive that de-sal water is and who is getting stuck with the bill.

Until “admin” gets something else up, this is your weekend open thread. Wonk out about… whatever.


About Tyler in Irvine

Twenty Year Irvine Resident. Native Texan and proud Longhorn. Pro-Choice Ron Paul supporter. "Do I contradict myself? ... then I contradict myself, I am large, I contain multitudes." - Walt Whitman