SDCWA Special Agricultural Water Rate Program

On October 14, 2008, the Metropolitan Water District of Southern California (Metropolitan) approved a phase out of its Interim Agricultural Water Program (IAWP) by January, 2013. As part of the phase out, current IAWP participants will be given an annual opportunity to "opt out" of the program, and become full-price, firm customers effective January 15, 2009. This potential action by Metropolitan raises several policy issues about the future of the San Diego County Water Authority's (Authority) companion discount program, the Special Agricultural Water Rate, or the SAWR. Given the action by Metropolitan, the Authority Board will review the SAWR at its October meeting.

The SAWR was implemented in 1998 and arose out of the recognition that agricultural water users would be significantly impacted by the costs of the Authority's Emergency Storage Project (ESP), which was designed to make water available to the San Diego region in the event of an interruption in imported water deliveries. In response, the SAWR was created to provide agricultural customers with a discounted water rate in exchange for a reduced level of service during an emergency shortage.

Today the SAWR discount has two major components:

(1) Storage Charge discount and

(2) Melded Supply and Treatment Rate discount

Under the Storage Charge discount, agricultural customers do not pay the commodity based portion, or Storage Charge, of the ESP but do pay the Infrastructure Access Charge portion. In return, during an emergency shortage, agricultural customers would receive only 50% of their normal use while full-price customers would receive 75%.

In addition, agricultural customers also do not pay the Authority's Melded Supply Rate or Melded Treatment Surcharge. As a result, growers (1) do not have to pay for costs associated with the Authority's IID Transfer Water, the All-American - Coachella Canal Lining Projects, and the Central Valley Transfer and Groundwater Storage Assets, which they would not have access to during shortage conditions and (2) pay the Metropolitan IAWP treatment rate.

Some of SDCWA's member agencies participating in the IAWP are asking the Authority to continue providing the discounts to growers who opt-out in exchange for less reliable supply during shortages. The Authority is considering options including establishing a new agricultural water program and class of service. Our website will bring you up-to-date information as the details unfold.

Print this page