Why are MWD’s rates going up so much?
Several factors are driving MWD’s water rates higher. MWD is more reliant now on meeting its water demands with State Water Project water, which can be five-times to 22-times as expensive as Colorado River water. Also, drought and regulatory restrictions on water deliveries from Northern California have diminished much of MWD’s stored water supplies – reservoirs filled years ago with lower-cost water. MWD is also pursuing more costly short-term water transfers to bolster supplies. Finally, reduced water sales from voluntary conservation efforts or water shortages may require MWD to increase rates further to meet its fixed costs.
