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Water authority previews settlement with Metropolitan, says 2026 wholesale rate increase will be about 10.4%
Summary
San Diego County Water Authority leaders told the City Council on June 3 that a newly announced settlement with the Metropolitan Water District should stabilize transportation costs over the long term, but that the authority is proposing a 10.4% wholesale rate increase for 2026. Councilmembers pressed the authority on affordability, reserves and steps to reduce nonessential spending.
Dan Denham, general manager of the San Diego County Water Authority, told the City Council the authority was asking its board to consider a 10.4% wholesale rate increase for 2026 and described a recent settlement with the Metropolitan Water District he said will provide long‑term rate stability.
Denham framed the request as part of a broader portfolio strategy. “We’re currently sitting at a 10.4% rate increase for 2026,” he said during an hour‑long briefing. He said the authority faces a mix of supply costs — from relatively low‑cost transfers to costly desalination — and that litigation with Metropolitan had been a multiyear drag on regional collaboration and rates.
The settlement Denham previewed, reached after more than a decade of litigation, will…
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