MDC CONSUMER ADVOCATE FINDS HI-VOLUME DISCOUNTS UNJUSTIFIED AND INEQUITABLE

Attorney David Silverstone, the Independent MDC Consumer Advocate releases, an analysis of the proposed 2019 MDC budget

Attorney David Silverstone, the Independent MDC Consumer Advocate, examined multiple aspects of the proposed 2019 MDC budget. Of special note were his findings on the proposed "Economic Development Rate, which he deems : "especially problematic" :

"The proposed Economic Development Rate would give a 20% discount on all water consumption over 600,000 gallons per day. There is no cost justification for such a discount. Second and perhaps more importantly, for these largest customers the clean water project charge (also known as the special sewer service charge} would no longer be based on water consumption for water in excess of this 600,000 gallon threshold, but rather would be based on sewer flow associated with the excess over 600,000. The fundamental principle of linking the clean water project charge to water consumption would therefore be broken. This approach favors water customers who discharge less into the sewers than water used. This approach favors customers like water bottling plants, golf courses and the like.

The MDC should not be picking which types of customers get better rates for service. It should be providing service to all customers on an equitable basis. This treatment is simply not equitable. For example, a condominium association approached the MDC in the last several months and argued that it should not have to pay the clean water project charge on the water it used for irrigation.  It meters this irrigation water separately from domestic consumption and the irrigation water was not discharged to the sewer. The argument was rejected on the grounds that all metered water is subject to the clean water project charge, whether it goes into the sewer or not. Under this proposed economic development rate, this principle is clearly violated. discount

The magnitude of this change in how the clean water project charge is calculated will vary depending on the tpe of customer. It could be substantial and in all likelihood will be far in excess of a 20% discount. For example, if a customer only discharges 30% of purchased water to the sewer, the customer would be getting a discount of 70% off the clean water project charge for water usage in excess of the 600,000 gallons/day."

OF NOTE: Niagara Bottling of California is the only MDC customer currently approaching this 600,000 gallons/day and discharges approximately only 20% of the water it uses into the sewers.  Most leaves in millions of bottles a day loaded onto semi trucks and leaving the watershed.

See his full analysis in the document below.