FPUD will use the MWD repayment for CUP loan repayment

Joe Naiman

Village News Reporter

The San Diego County Water Authority filed multi-rate lawsuits against the Metropolitan Water District of Southern California and won damages and interest payments. The SDCWA reimburses lawsuit fees to its member agencies for those agencies’ share of the settlement. Each CWA member agency can choose how to use the money, and the Fallbrook Utility District Board of Directors voted Jan. 24 to use the refund to reduce the FPUD loan amount for the project. joint use of Santa Margarita.

The FPUD Board of Directors voted 5 to 0 to select the CUP loan amount reduction option. FPUD will receive a refund of $1,534,663.30.

The suit relates to the rate that MWD charged the CWA to transport water obtained from Imperial County under the Quantification Settlement Agreement. MWD charged a water management tariff, and the courts have ruled that this tariff should not have been charged for QSA deliveries. The rate case for the MWD royalty from 2011 to 2014 provided FPUD with $909,412.67, and the settlement with MWD for delivered water from 2015 to 2017 provided an additional $625,250.63 to FPUD. The CWA calculated each member agency’s share based on the agency’s percentage of total municipal and industrial purchases in those years.

FPUD’s Tax Policy and Insurance Committee considered three potential uses of the refund. One was to reduce the 2023 calendar year rate and fee increase, the other was to add money to the FPUD reserves, and the other was to reduce the CUP loan amount. The committee recommended the reduction of the CUP loan.

The State Department of Water Resources provided a loan to the State Revolving Fund for the CUP. In January 2020, the State Water Resources Control Board approved a State Revolving Fund loan of $62,935,885 which included a contingency of $5,440,000 plus the costs of construction, design and construction management.

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