Metropolitan, San Diego County Water Authority end legal dispute

Front row, from left: SDCWA General Counsel David J. Edwards, SDCWA General Manager Dan Denham, Metropolitan General Manager Deven Upadhyay and Metropolitan General Counsel Marcia Scully at the news conference announcing the settlement on June 2.

Signaling a new era of collaboration, Metropolitan and the San Diego County Water Authority have settled a 15-year legal dispute over rates and the price term of an exchange agreement between the agencies. 

At a news conference in San Diego on June 2, leaders from the two agencies celebrated the conclusion of all pending litigation, highlighting their commitment to fostering greater teamwork on a range of issues that affect nearly 19 million Southern California residents. 

The settlement dismisses all pending appeals, maintaining earlier judicial decisions on various matters. It includes provisions to reduce the potential for future litigation, improve certainty in budgeting and increase flexibility in efficiently managing water supplies.

"From Metropolitan’s perspective, the agreement provides increased revenue certainty, potential access to additional water, and the confidence that years of litigation are behind us," Metropolitan General Manager Deven Upadhyay said.

The agreement also opens a pathway for San Diego to provide water to other water agencies in Metropolitan’s service area.

“Ratepayers and water users across Southern California are the winners in this settlement. It provides a new revenue opportunity for San Diego, a new water supply opportunity for other communities, and greater budget certainty for the entire region,” said Water Authority board Chair Nick Serrano.

Read the press release.

"For far too long, this legal battle sat at the center of Metropolitan’s relationship with the Water Authority. That era of conflict has finally come to an end and we can forge ahead, building a relationship based instead on cooperation and shared goals that will benefit the entire region."



Metropolitan board Chair Adán Ortega, Jr.

Metropolitan seeks public comment for Pure Water Southern California Draft Environmental Impact Report

Above, Senior Public Affairs Representative Ivonne Castillo conducting community outreach at Aquarium of the Pacific in Long Beach. Below, visitors stop by Metropolitan's information booth at the Heritage of Aloha Festival in Santa Fe Springs.

To boost awareness of Pure Water Southern California and public participation in the Draft Environmental Impact Report process, Metropolitan staff have been conducting extensive outreach through public meetings and community events.

The district hosted two virtual public meetings, and staffed an information booth at the Heritage of Aloha Festival in Santa Fe Springs, the Aquarium of the Pacific in Long Beach and the City Yard Open House in Torrance.

Pure Water Southern California is a large-scale regional recycled water program being developed in partnership with the Los Angeles County Sanitation Districts. The project would purify and reuse cleaned wastewater currently discharged to the ocean. At full capacity, it is expected to produce 150 million gallons of purified water daily – enough to meet the needs of 1.5 million people and benefiting the entire region.

The program's Draft EIR was released on May 14. The document identifies and addresses potential environmental impacts from the construction and long-term operation of new facilities in Carson and other communities in Los Angeles County. Community members and stakeholders can comment on the report's analysis through July 14.

Metropolitan's Pure Water information booth will be at the Summer Concert in the Park in Lakewood on July 10. A public tour of the Pure Water demonstration plant will be held Aug. 9. Register at www.mwdh2o.com/purewatertours.

For more information about the Draft EIR, visit www.mwdh2o.com/purewaterDEIR. 

The nation's top ratings agencies have again assigned Metropolitan excellent credit ratings, citing strong financial policies and prudent planning in a challenging water environment.

All three rating agencies noted that budget and business model refinements adopted in recent years have made Metropolitan more financially stable. While Metropolitan faces increased climate risks, such as drought and wildfires, S&P cited the modeling of various supply and demand scenarios in Metropolitan’s recently adopted Climate Adaptation Master Plan for Water, as well as strong emergency planning, as key factors that will reduce vulnerabilities.

Read the press release.

Water industry veteran Raymond Jay joins Metropolitan's Board of Directors representing the city of Torrance

Raymond Jay was seated as Torrance's representative on Metropolitan's board on June 24, bringing 35 years of water resources experience to the post. Director Jay replaces Russell Lefevre, who represented Torrance on Metropolitan’s 38-member board since 2013.

Director Jay has served on Torrance’s Water Commission for eight years, including two years as chair. He retired from Metropolitan earlier this year after working for 18 years in local water supplies and grants, primarily within the Water Resource Management Group. Before joining Metropolitan, he worked for 17 years with water regulatory agencies in California and Virginia.

“Director Jay brings diverse expertise from his time in the regulatory arena, as well as from his experience at Metropolitan and his years serving on Torrance’s water commission,” said Chair Ortega. 

Read the press release.