MWD owes Water Authority $235 million and rights to more MWD water supply

A final judgment entered in San Francisco Superior Court late Wednesday affirms victories by the San Diego County Water Authority in both phases of two landmark lawsuits challenging rates set by the Metropolitan Water District of Southern California. The judgment also orders MWD to recalculate the Water Authority’s statutory right to MWD water supply – a right MWD had illegally under-calculated for more than a decade.

The final judgment by Judge Curtis E.A. Karnow combines rulings he issued in 2014 and 2015. Key elements of the judgment are: the invalidation of MWD’s unlawful transportation rates for 2011-2014; an order directing MWD to pay the Water Authority $188.3 million in contract damages; and a finding that MWD has under-calculated the Water Authority’s right to MWD water by tens of thousands of acre-feet of water per year.

In addition, the judge said MWD owes the Water Authority $46.6 million in prejudgment interest, for a total judgment of nearly $235 million. That amount will accrue simple post-judgment interest of 7 percent annually, meaning the total amount due to the Water Authority will grow by $45,000 per day – or $16.4 million per year – until MWD pays what it owes to the Water Authority.

Read the San Diego County Water Authority’s press release
SDCWA Release-Final Judgement in MWD Rates Case