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Why are San Diego water rates so high?

The San Diego County Water Authority has been upgrading its existing water storage facilities in an effort to decrease reliance on the Metropolitan Water Authority. This photo shows construction at the San Vicente Dam to remove the right crest of the dam to increase the size of the reservoir, November 2009.
San Diego County Water Authority
The San Diego County Water Authority has been upgrading its existing water storage facilities in an effort to decrease reliance on the Metropolitan Water Authority. This photo shows construction at the San Vicente Dam to remove the right crest of the dam to increase the size of the reservoir, November 2009.

Conservation efforts combined with projects across San Diego are playing a role in putting the county in a better position to weather a drought, but is also leaving the county with some of the highest water rates in the state — higher than Los Angeles County.

A new report by Arizona State University environmental economist Michael Hanemann offers an analysis of water rates in San Diego County. He found that the San Diego County Water Authority's wholesale rate for untreated water is $400 more per acre-foot than the Metropolitan Water District in Los Angeles.

Joshua Emerson Smith, enterprise reporter for The San Diego Union-Tribune, joined KPBS Midday Edition to talk about the report's findings and the county’s water policy.

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"People are increasingly unable to afford their water bills. It's pretty significant," Smith said. "We have farmers who are saying they can't afford the cost of water and we've seen demand from the agricultural sector drop pretty severely, but now increasingly low-income folks and even middle-income folks are saying they're having a hard time paying their water bills."

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Smith said the fact that San Diego is at the end of the pipeline for state water supplies is part of the reason San Diego County Water Authority has been investing in large water projects like the desalination plant in Carlsbad and other infrastructure improvements.

"We're at the end of the pipeline when it comes to delivering water from the Sacramento Bay Delta and the Colorado River, but we've also had a little bit of bad blood with our wholesaler, the Metropolitan Water District of Southern California, after a dust up in the early '90s over drought restrictions, and ever since then the Water Authority here in San Diego has been looking to develop its own supplies for water and use less and less of the Met. water," Smith said.

He said since 2010, demand for water from wholesalers has decreased 40%, and that a lot of it is due to conservation, such as people ripping out their lawns with turf rebate programs, mandatory drought conservation during the last drought and people using less water overall.