The Metropolitan Water District (MWD), wholesale supplier to local districts serving 13 million Southern California customers, is expected to approve its first water rate reduction in 25 years beginning July 1 under a proposed cut of $9 per acre-foot.
The recommendation from MWD staff officials will be voted on Tuesday in Los Angeles by the district's directors.
The proposal follows an increase of $53 per acre-foot that was put into effect last year for 27 member agencies from Ventura to San Diego counties. It would be only the fourth rate reduction since the district began wholesaling water in Southern California in 1941.
The City of Los Angeles is a member despite taking most of its water from the Owens Valley.
The recommended cut, announced this week, results from an unexpected $26 million in energy credits that the wholesaler will receive from the state of California. District officials had proposed maintaining current rates for another year. Prices now range from $197 to $229 an acre-foot for water used for domestic and industrial use, and from $153 to $185 an acre-foot for water purchased for future emergency use. (An acre-foot of water equals 325,900 gallons, or enough to supply an average family of five persons for a year.)