Redlands approves revised recycled-water agreement with Southern California Edison

The Redlands City Council approved a revised recycled-water supply agreement with Southern California Edison (SCE) that updates terms from a 20-year-old contract. Municipal Utilities Engineering Director Harris told the council the previous agreement required SCE to take or pay for 3,000 acre-feet annually; the new agreement reduces the take-or-pay volume to 1,500 acre-feet and simplifies unit pricing and billing.

Harris said the change benefits the city by freeing up about 1,500 acre-feet of recycled water that can be delivered to other customers in the city’s service area. The new agreement includes a unit price per CCF, a 3.75% annual escalator and off-ramps for both parties to align contract obligations with current regulations. Harris said the city typically received between $360,000 and $380,000 per year under the legacy contract; the new agreement is expected to generate somewhat more revenue initially (about $390,000) and increase over the term (staff cited projected revenue rising to more than $700,000 by year 20 under the escalation table).

Councilmembers thanked staff for negotiations. No public opposition was recorded. The council found the approval exempt from CEQA pursuant to the cited guideline and approved the agreement by unanimous vote: Councilmember Barich, Councilmember Tejeda, Councilmember Davis, Mayor Pro Tem Shaw and Mayor Sacedo voting yes.

Staff said the city currently serves about 75–80 recycled-water customers and has a waiting list of similar size; the contract change would allow the city to extend service to additional customers.