Padre Dam Board Votes to Return Money to Customers Through RAtes
Padre Dam Municipal Water District’s Board of Directors unanimously approved using the recently received $1,157,552 rebate from the San Diego County Water Authority (CWA) to offset the District’s next pass‐through rate increase from the San Diego County Water Authority. This action will result in a direct benefit to customers by the reduction or potential elimination of a water pass through increase in 2022.
CWA’s Board of Directors announced a plan on February 25, 2021 to distribute a $44.4M rebate, received from Metropolitan Water District (MWD), to its 24 member agencies. Padre Dam’s portion of the rebate is $1,157,552. The rebate was the result of a decade‐long rate case litigation. CWA won several critical issues in the litigation against MWD and was deemed the prevailing party. Since the rebate is related to prior water purchases, the funds may only be spent for water‐related purposes. Padre Dam considered various options for how to apply the District’s rebate before ultimately voting to offset the next CWA rate increase, which is expected in January 2022.
“We are happy to see the resolution of the CWA and MWD rate case end successfully for our region after many years of litigation,” commented Board President Doug Wilson. “Our customers were directly impacted by the charges that have now been recovered by CWA, so it makes sense to return the money to them. The approved pass‐through offset essentially refunds our customers the money we received on their behalf from the San Diego County Water Authority. This decision was the right choice for our customers.”
The District hopes to be able to offset the full pass‐through amount for 2022. CWA is working to confirm rates for 2022. Once these rates are finalized Padre Dam will be able to determine if the full pass‐through amount can be offset.